in financing for a 112-unit affordable housing project in San Francisco was set to close. The construction lender? Silicon Valley Bank (SVB). LAC members are already presenting a seminar on the SVB collapse and contractor remedies.
LAC At Work for You The LAC is comprised of the top con- struction attorneys in California who have specialties in virtually every legal issue that could confront contractors, from alternative project delivery to workers’ compensation. Tis tremendous resource of construction lawyers is available to AGC of California members through the Legal Hotline at
www.agc-ca.org/resources/ advocacy/legal-resources/. LAC members, through the Amicus
Subcommittee, are also active providing amicus or “friend of the court” briefs, which present the general contractor’s perspective on legal issues impacting our membership. In some cases, a contrac- tor party will ask us not only for a legal briefing but also to present our position before the court during oral argument. LAC amicus participation reaches be- yond a specific case. For example, inUnited Riggers & Erectors, Inc. v Coast Iron & Steel, the AGC of California submitted an amicus brief and argued our position before the California Supreme Court. Previously, an owner might withhold payment to exert leverage on a contractor to drop their claim. Te Court inUnited Riggersheld not just any dispute would justify withhold- ing payment under California’s prompt payment statute.United Riggers has since been cited in 39 decisions. Check-out the excellent article by the LAC’s Garret Murai onVought Construction v Stock (another case citing United Riggers) addressing a related issue, on page 14. Another LAC amicus to the California
Supreme Court, Professional Engineers in California Government v Kempton,
TheLACis comprisedof thetopconstruction attorneys inCaliforniawhohavespecialties in virtuallyeverylegal issuethat couldconfront contractors, fromalternativeprojectdeliveryto workers’
compensation.This tremendousresource of constructionlawyers isavailabletoAGCof Californiamembers throughourLegalHotline.
involved a constitutional challenge to the use of design-build project delivery by Caltrans. AGC of California was on the winning side in this case, which arguably changed the public works project delivery landscape in California forever. LAC mem- ber Daniel McLennon has a great article (page 18) on yet another twist in project delivery, “progressive design-build,” being utilized by some public owners in Califor- nia and the legal challenges and potential pitfalls surrounding that system. In addition to the work by the LAC in influencing judicial decisions, our LAC members are also active in impacting legislative actions. AGC of California is participating in workshops and provid- ing comments and analysis on various legislation and proposed regulations on fugitive dust, off-road diesel, and clean fleet regulations among others through our Legislative Committee. Another article in this issue by Hanson Bridgett explores the Inflation Reduction Act, which, in addition to being a source of funding for public works projects in California, will also bring substantial new compliance requirements.
Keeping Contracts and Forms Up to Date Five years ago, did anyone pay attention to “pandemic” language in the force majeure provision of their agreements?
After constant drought, did anyone really pay much attention to rain and weather impact language? Did you know a recent California case had a major impact on the enforceability of “pay when paid” provisions, or that legislation provided audit rights to contractors to assure sub- contractors are properly paying labor? Te LAC’s Contracts and Forms Sub- committee is engaged in updating AGC of California’s standard agreements and forms to reflect the latest in legislative and judicial decisions as well as economic issues like supply chain shortages and material price escalations. Over the rest of the year, we are go-
ing to share with the membership short takeaways on some of the issues we are watching and provide legal tips. I encour- age you to reach out to the LAC to raise issues that you are encountering in your work. Mary Rancier is our staff liaison, and her contact information is available on the AGC of California website. Tings are waking up!
John P. Carpenter is a construction lawyer and chief legal officer for Balfour Beatty Infrastructure. He has been actively involved in all facets of construction law throughout the western United States with a particular interest in alternative dispute resolution and megaprojects. He can be reached by email at
JohnCarpenter@Balfourbeattyus.com.
CALIFORNIA CONSTRUCTOR MAY/JUNE 2023
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