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Volume 6 - Number 50 | December 22, 2008

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Recent Issues

  EDITOR'S NOTES | Volume 6 - Number 50 | December 22, 2008
In this final issue of 2008, we look at California’s recently passed Right to Repair Act. With its passage, homeowners in the Golden State can now sue a contractor or product manufacturer for defects, regardless of whether the defect has caused harm. A California appeals court has just extended the interpretation of that law to also protect builders against defective products and services.

The Prompt Payment Act also gets attention this week. The federal claims court ruled that though a contractor can collect interest on wrongfully retained funds, it cannot also collect interest on that amount for late payment.

And finally, the GAO gave a contractor a second chance on a bid proposal after it rules that the contractor’s technical bid should have received additional attention during the government agency’s review process.

As the year draws to a close, we want to thank you for choosing Construction Claims Advisor for the latest in construction law news. We look forward to continuing to bring you up-to-the-minute news that affects how you do business. Happy holidays!
  CALIFORNIA BUILDERS CAN NOW REACH PRODUCT MANUFACTURERS
California’s new Right to Repair Act gets its day in court. The decision expands the law to protect builders as well as homeowners from defective construction products.
  GOVERNMENT AVOIDS PROMPT PAYMENT INTEREST ON RETAINAGE
Accrued interest on an alleged Prompt Payment Act violation is rejected by the federal claims court. The contractor could collect interest on a wrongful retainage, but not on a late payment of that retainage.
  EVALUATORS MUST DISCUSS IDENTIFIED TECHNICAL DEFICIENCIES
A contractor is afforded a second opportunity to present its proposal to a government agency after the GAO determines the agency should have addressed technical deficiencies in the original proposal.