E-News for February 6, 2015 Dear Members and Friends: Condo Shakedown - It is an all-too-common scenario in California construction: Nine and a half years after completion of a major California construction project, immediately before the 10-year “statute of repose” for suing on “latent” construction defects expires, a lawsuit claiming damages for “recently discovered” latent construction defects is filed. The property owner sues the contractor for the alleged defects. The direct contractor sues all its subcontractors for indemnity and defense. The attorneys spontaneously generate. Experts proliferate. Claimed defects are extrapolated. Four or five years later, after a few dozen attorneys earn a small fortune in fees, the insurance companies make payments. Attorneys collect more fees. The owners take what remains. They repair nothing... and buy vacation homes……See Our LAST PAGE to learn how one project got around all this Fun Stuff and Workshops at the Exchange! Here is the current list of what is coming up in February and March Most Workshops are Free for members and their employees. California Lien Law 3/11/15 Construction Contracts 3/18/15 Small Claims Court 4/1/15 Beginning Contractor 3/25/15 First Aid and CPR – TBA Get the sign up forms in this issue! Fun Things on the Way More theatre – Join your fellow members and bring your friends to three theatre events! Phantom of the Opera Sign up now to make sure you get tickets! Sign up flyer in this issue Deadline 2/5/2015 Matilda Sign up now to make sure you get tickets! Sign up flyer in this issue Deadline2/5/2015 Office Space at the Exchange – Bright, Sunny Friendly 375 sf of full service office at the Exchange. Good location and includes, custodial, utilities and everything except telephone and internet. Call us at 650-591-4486. Donate to Second Harvest Food Bank – The Exchange is a drop off point for your Second Harvest Food Donations – Stop by and put them in the container in our lobby! You Can Join – The Exchange is welcoming new members – Plans online, business assistance, discounted insurance, networking trips and a lot more. The Exchange is the best business association investment you can make – and its tax deductible for most businesses. Call Tom at 650-591-4486 for more info. Follow us on Twitter at: https://twitter.com/PBX101E Not just for kids! It’s a good way to keep up with things at the Exchange. If you don’t have Twitter, you should get it on your cellphone. It gives you brief messages and if you are interested in the topic, you can download from the source by tapping a link. If you are not interested, just ignore it. The good part about Twitter is that it is non-invasive. You can review it in an instant from anywhere and ignore what you don’t want to see. Come See Us! We are open 7:30 AM to 4:30 PM on weekdays – stop by and see us at 735 Industrial Road in San Carlos (between Holly and Whipple) We are a nonprofit, member run association dedicated to helping contractors, subcontractors, suppliers, designers and others in the construction industry. We have been doing this since 1945. Sincerely, Tom McGinley Executive Director ---------------------------------------------------------------------------------------------------------------------------Classified Ads for Members – If you are a member you can run a brief classified ad in this newsletter for free (circulation 1176 weekly). These can be ads for equipment for sale / wanted or for help wanted or other “stuff”. Send your ad to: Andrea@ConstructionPlans.org and please use Microsoft Word format Receive up to $150 credit when you open a new charge account at Hayward in Redwood City. Easy as 1-2-3-4... February 2015 Event Schedule Redwood City $150 - EASY AS 1-2-3-4 Ask at the store how to make this happen. H Every Tuesday 7 a.m. Free Pan Dulce and Cafe’ de Olla (Mexican pastries and coffee) Every Wednesday 7 a.m. to 10 a.m. Free Product Knowledge Seminars: 2/4 Weatherization Partners (Tyvek) 2/11 Henkel 2/18 Feeney Cable Rail 2/25 Prosoco Every Thursday $50 giveaway Every Saturday 8 a.m. Free Pan Dulce and Cafe’ de Olla (Mexican pastries and coffee) 1. Drop off a completed Credit Application to 1775 East Bayshore Rd., Redwood City. Or download the Credit Application at www.haywardlumber.com or pick up the application at the Redwood City location. 2. Receive a $50 credit to your account when opened*. 3. Receive another $50 credit to your account when you spend $100 or more in the next billing cycle*. 4. Receive a third $50 credit to your account when you spend another $100 or more in the following billing cycle*. *• • • • • • • This offer applies to new accounts only Each $50 credit expires 30-days after issuance Account must be opened by February 28, 2015 Must attach coupon to new application quality Account must be in good standing and not past due Account will be opened on approved credit No cash value Full details available at www.haywardlumber.com and at the Redwood City location. FER THIS OF O ST APPLIE S COUNT NEW AC Y! ONL Bring in this card and be entered in a special $100 Drawing! JOIN US FOR FREE FOOD AND PRODUCT KNOWLEDGE SEMINARS Your Connection to the Industry... Contractor ProView h f Supplier ProView ProView is how the entire construction industry will see – AND connect – with companies like yours when they search thebluebook.com. It provides all the information decision-makers need about your company in one complete, convenient format. ProView quickly brings your projects or products to life with a dynamic full-color, image gallery! It’s also equipped with a personalized, portable URL so you can feature it in all of your marketing communications. Don’t have a website? ProView offers a powerful solution that includes: Get your company connected to the industry today with a Blue Book Network ProView. 800-431-2584 | www.thebluebook.com • Complete Company Information/Branding • Geographical Areas Serviced • Recently Completed Projects • Full-Color Photo Gallery of Your Projects/Products • Email Links for Information and PreQual Requests • Links to Specs, BIM, CAD and other “Related Files” • Name Brands and Products Installed/Supplied • Trade Associations, Memberships & Govt. Certifications Peninsula Builders Exchange and ARC Document Solu ons has partnered up to offer a discounted price on prints for Peninsula Builders Exchange Members! If you place your order though Peninsula Builders Exchange it will be $4.50 a sheet up to 24” x 36”! If you would like to place an order please email Andrea at an‐ drea@construc onplans.org with the name of the project and what pages you want (Phone orders will not be accepted). If you have your own set of drawings you’d like printed please a ach that file with what pages you’d like. You’ll be no fied when your order is ready. Orders should be ready to be picked up at the ARC of your choice in 24 hours. C.H.A.S.E. Need Help With Safety? Need Help With Safety and Environmental Issues? The Safety Resource for Peninsula Builders Exchange Members is C.H.A.S.E. C.H.A.S.E. President Bill Sanborn is the regional expert on Construction Health and Safety Issues. If you need safety advice please give him a call! Safety Plans (IIPP) Construction Safety Related Training Cal-OSHA Paperwork Citation Defense Environmental Issues Employee Safety and Exposure Ergonomics Call Bill Sanborn at: 408-374-9565 can save you between $1,500 - $7,500* *based on loan amount and state Peninsula Builders Exchange members are now eligible to save an exclusive 0.25% discount off the price of a construction loan! loan! Given an A+ overall institution health rating! Call us at 855-330-3200 Holds one of the highest capital ratios in the banking industry. Savings-focused institution founded in 1990. YOUR UNIQUE DISCOUNT CODE V64LPP17 Save up to $2,500 with a loan amount of $1,000,000! Pre-Construction Lot Financing Rate Indicative Pricing Pricing w ith your discount 8.00% 8.00% 6 m onth 1 point 0.75 point 9 m onth 1.5 points 1.25 points 1 additional point 1 additional point Each Three (3) Month Extension Fee Residential Speculative Construction Loan Indicative Pricing Pricing w ith your discount 7.500% 7.50% 1.5 points 1.25 points 12 m onth (364 day) Term 2 points 1.75 points 18 Month Term 3 points 2.75 points 1 additional point 1 additional point Rate 9 Month Term Each Three (3) Month Extension Fee “A Tradition of Service” Colorado Federal Savings Bank 855-330-3200 construction@coloradofederalbank.com Rev. 10/2013 Version 1 Three Cards One Invoice With this “Freedom” card you can • • • • • • Control Fueling Settings Shop for the Best Street Price Charge Maintenance and repairs Use almost any gas station Manage your account online NO FEES With this “Cardlock” card you can • • • • • • Control Fueling Settings Fuel oversized trucks Use high-flow pumps Use unattended sites Manage your account online NO FEES With this “Retail” card you can • • • • • • Control Fueling Settings Shop for the Best Street Price Charge Maintenance and repairs Charge Hotel Stays Manage your account online NO FEES Michael Nathan (510) 376-4700 michaeln@4flyers.com Need A Conference Room? Member Benefit Members are welcome to use the Exchange conference room free of charge. Weekdays from 7:30 until 4:30 just call ahead and reserve your time slot. Seats about 18 comfortably. 650-591-4486 Office for Rent – 375 sf Full Service at the Exchange We have good offices for your business! - 375 square feet of full service carpeted office, including utilities, janitorial, Free mail and Package Receipt and Free conference room use, Copier, Lunch Room and Parking right outside the door 375 sf available Now, sunny, clean and carpeted, The building has a good mix of small businesses including accountants and software. Good, friendly, quiet building near 101, downtown San Carlos, Oracle, 24 Hour Fitness and train station with lots of parking. Coffee room and copier on site. This is a nice small business friendly environment and a good place to work. Good for any small business. . Services Provided & Included: Utilities Janitorial Mail & Package Receipt Free use of Conference Room Copier Coffee Room/Lunch Room 24 Hour Access We rent this office with full service which includes janitorial, all utilities and free conference room use. This is a Gross lease, which means you pay one price ONLY the monthly amount -- You do not pay any extras for taxes, insurance, maintenance, etc. that are in the typical "net" (NNN or NN) lease. Just add telephone and internet if you want them from ATT or Comcast (both in the building) and you are good to go . For an unbeatable price call Tom or Leslie or Andrea at 650-591-4486. New Law Requires Free Plan Sets: AB 2036 is a new law which requires that government agencies provide digital plans to local builders exchanges when requested. We, as members of GSBE and in conjunction with the AGC, sponsored this legislation because many jurisdictions were withholding plans from our exchange and some were even trying to charge for digital copies sent by email. Many jurisdictions also use “blueprint services” as the sole method of distribution – which forces contractors to buy printed sets of digital plans. This is good legislation for our members and we are beginning our campaign to make the various state and local agencies aware of the new law, and also asking them to provide us with plans. Over the next several weeks Andrea will contact many local jurisdictions and make a special effort to reach those small water districts and school districts which often go unnoticed. If there are any public agency projects you would like us to get a set of plans for, please contact Andrea at 650-591-4486 and we will request them under AB 2036. We at the Exchange recommend Planswift as the best digital take off program for small to medium sized contractors. We have arranged with Palnswift to give our members a two week trial with telephone support. If you are curious about digital takeoff software – this is the best way to find out if it is right for you. To get your free trial please use the following link: www.Planswift.com/Requesttrial/?AID=247 Health Insurance Answers You Can Trust Need help in understanding how to get decent coverage? Want to see if you will benefit from the 2014 changes? Will an HSA work for my insurance needs? Will health insurance help retain employees? Can I position my income for a insurance subsidy? How can I get “guaranteed issue” if I have health problems? Which carrier should I choose? Plan Administration and Paperwork? – Just leave it to Us! Call Todd Taylor, our preferred Health Insurance Person for straight forward answers you can trust. Todd has helped over 100 members! 650-594-5933 408-358-7502 Choose from any of the following plans: Kaiser-Convenient & one close location for all of your health care needs Anthem Blue Cross & Blue Shield - Largest selection of plans & largest PPO networks in the state Health Net-great alternative carrier to the Blues with competitive plans Health Insurance Answers You Can Trust! 408-358-7502 or 650-594-5933 Winner of 9 Tony Awards® including Best Musical! From Trey Parker and Ma Stone, the creators of South Park, comes a new Broadway musical called “the best musical of this century” (Ben Brantley, The New York Times) and “the monster hit Broadway’s been desperate for” (Michael Riedel, New York Post). The Book of Mor‐ mon follows a pair of mismatched Mormon boys sent on a mission to a place that’s about as far from Salt Lake City as you can get. Described by Jon Stewart of The Daily Show as “a crowning achievement, so good it makes me angry” and by Entertainment Weekly as “the funniest musical of all me,” see it now or find yourself asking, “Dear God, how do I get ckets?” (Village Voice). Contains explicit language. Wednesday, May 6th, 2015 at 8pm Orpheum Theatre 1192 Market St, San Francisco, California 94102 Orchestra Seats $100.00 Per Ticket. Deadline for ckets Thursday January 22nd, 2015 or un l ckets sellout Yes, Please reserve______Seat(s) for The Book of Mormon My Check for $__________($100.00 each) is included. Name:_________________________________________________________________________________________ Company Name:_________________________________________________________________________________ Address:________________________________________________________________________________________ Telephone:___________________________Email:______________________________________________________ Please return with payment to: Peninsula Builders Exchange, 735 Industrial Road, Suite 100, San Carlos CA 94070 Ques ons call: 650‐591‐4486 ar n i m e al S g e L l r n Cu e e l ts” h c t a r Ca t n n Co o i t c u tr “C o n s M 0 Non0 . 0 7 / rs Me mb e s , 2015 h t 8 1 March y a d s :30am 1 1 Wedne o t 9:30am embers ding n a t s r e nd e misu h t r o s f i e s Fre ! dispute n n g i o plete. i S t c m u o u o r c Y t n s t i nd the ich are nd Wha s of con a h a e t t s w s s r u r s e a e t c d c d n a n Un d contr d and u commo n a t a e s r s o e o t m s cause the clau how y t a u c o a m y r t h s n One of ic w ction co url sho ions wh u C s r i t n v s e o n r e l o p of c ey Cath ontract n c r o d t i t o A v a ction how to d n Constru a s clause n o m m ntract o co C n o m . id /Com s o v m rview / a e e l v d b l o u t o c pro h contra at you s : m r h e o d f W u l / d c r t in Standa contrac Topics / r s u n o y o i t n i odifica uld be m o h e s k t a a m Wh hen to w & w R! A s ho N I m e l M b o E r s p IS S H rement T i u S q e S r I M State DON'T Please reserve ____ seats for the Construction Contracts Seminar. (*Please arrive on Ɵme to avoid disrupƟng the seminar*) Check for $ _________(Free for members & their employees on payroll, $70.00 Non-member per person) is enclosed or Visa/MC/AE Card # ____________-___ _________ - ___________ - ___________ Exp. ______/ ______ CVV ________ Attendee(s) (Please Print)_____________________________________________________________________________ Company Name: ____________________________________________________________________________________ Address:____________________________________________________________________________________________ Phone:___________________________________Email________________________________________________________ Mail or Fax (Credit Card only) with Payment to: Peninsula Builders Exchange, 735 Industrial Road, Suite 100, San Carlos, CA 94070-3314 Phone: 650-591-4486 Fax: 650-591-8108 Spring 2015 Workshops & Events Schedule California Lien Law – Protect your rights to payment. 3/11/2015 9:00AM until about Noon Members FREE – Non Members $70 Construction Contracts – Understand what you sign. 3/18/2015 9:30AM until about 11:30AM Members FREE – Non Members $70 Small Claims Court – Prepare and win your case. 4/1/2015 9:30AM until about 11:30AM Members FREE – Non Members $70 Beginning Contractor – Lots new this year, find out what you need to know. 3/25/2015 9:30AM until about Noon. Members FREE – Non Members Free (see flyer for detail) Book of Mormon – Theatre – The best show in decades! See it! Tickets by 1/22/15 $100.00each Show 5/8/2015 Check payment only for theatre events Matilda – Theatre – A play by based off Roald Dahl’s book – Really good! Tickets by 2/5/15 $65.00 each Show 8/12/2015 Check payment only for theatre events Phantom of the Opera – Theatre – Over 800 members and their employees can’t be wrong! See it! Tickets by 2/5/15 $86.00 each Show 9/23/2015 Check payment only for theatre events Please reserve __________ seats for ___________________________On ____ / _____ / _______ Use one form for each workshop or event. (Don’t forget to keep a copy of your form!)(*Please arrive on time to avoid disrupting the seminar*) Check for $ _________ is enclosed or Charge $________ to Credit Card (All Seminars are Free to Members) Visa/MC/AE Card # ____________-___ _________ - ___________ - ___________ Exp. ______/ ______ CVV ________ Attendee(s) (Please Print) ____________________________________________________________________________ Company Name: ___________________________________________________________________________________ Address: __________________________________________________________________________________________ Phone: ___________________________________Email____________________________________________________ Mail or Fax (credit card only) with Payment to: Peninsula Builders Exchange, 735 Industrial Road, Suite 100, San Carlos, CA 94070-3314 Phone: 650-591-4486 Fax: 650-591-8108 Free for Exchange Members You will learn about the NEW changes that come into effect July 1st, 2012 California has excellent Lien Laws to protect sub and general contractors, but there are things you MUST do BEFORE trouble arises. A orney Cathleen Curl explains how contractors and suppliers can use their Lien Law Rights. It’s easy if you follow a few simple steps to protect your rights and get paid! Morning Seminar at the Exchange Wednesday March 11th, 2015 9:00 am un l 12 noon *Please arrive on me to avoid disrup ng the seminar* Cost per person: Free for members and their employees on payroll $70.00 non‐members Please reserve _____seats for the Lien Law Seminar Members and Their Employees on Payroll are Free but please let us know who’s coming Check for $______($70.00 non‐member per person) is enclosed or Visa/MC/AE Card # ______‐______‐______‐______ Exp. ____/____ CVV ____ Signature:________________________________________________________________________________ Name of A endee(s): (Please Print)____________________________________________________________ Company Name:___________________________________________________________________________ Address:______________________________________________ Zip Code____________________________ Phone:______________________________Email___________________________________________________ Mail or Fax (Credit Card Only) With Payment to: Peninsula Builders Exchange, 735 Industrial Road, Suite 100, San Carlos, CA 94070‐3314 Phone: 650‐591‐4486 FAX: 650‐591‐8108 THE STORYTHE STORY “WELCOME TO THE DELIRIOUSLY AMUSING, MALEVOLENT, HEARTWARMING, HEAD-SPINNING WORLD OF MATILDA THE MUSICAL. YOU WON’T WANT TO LEAVE.” – BLOOMBERG NEWS Winner of 50 international awards, including the Tony Award®, and one of the biggest hits on Broadway, MATILDA THE MUSICAL is the story of an extraordinary little girl who, armed with a vivid imagination and a sharp mind, dares to take a stand and change her own destiny. Rolling Stone calls the show “hands down the BEST MUSICAL of the season.” Based on the beloved novel by Roald Dahl, MATILDA continues to thrill sold-out audiences of all ages on Broadway and in London’s West End. The Wall Street Journal says, “The makers of MATILDA have done the impossible – triumphantly! It is smart, sweet, zany and stupendous fun.” “ONCE IN A BLUE MOON, A SHOW COMES OUT BLAZING AND RESTORES YOUR FAITH IN BROADWAY. MATILDA THE MUSICAL IS THAT SHOW.” NEW YORK POST “MATILDA IS THE BEST MUSICAL SINCE THE LION KING!” – TIME MAGAZINE “THE BEST FAMILY MUSICAL IN YEARS.” – CHICAGO TRIBUNE Wednesday August 12th, 2015at 8:00pm Orpheum Mezzanine at 1192 Market St, San Francisco, California 94102 Deadline for ckets Thursday February 5th, 2015 Yes, Please reserve______Seat(s) for MaƟlda the Musical My Check for $__________($65.00 each) is included. Name:_________________________________________________________________________________________ Company Name:_________________________________________________________________________________ Address:________________________________________________________________________________________ Telephone:___________________________Email:______________________________________________________ Please return with payment to: Peninsula Builders Exchange, 735 Industrial Road, Suite 100, San Carlos CA 94070 There are 9 reasons why companies belong to the Exchange: 1. Problem Solving – we help you solve business problems 2. Staff help – You may know everything – but how about the people who work for you? We are here to help them also. 3. Social contacts – Work with, travel with and learn from others in your Exchange. 4. Power in Numbers. Hundreds in San Mateo County and Thousands in the State through GSBE. 5. Training and Assistance – Your existing managers, foremen and field people need to work safer, smarter and more profitably . We do construction industry training. 6. Relationships – We all help each other. 7. Projects and Plans on-line – Over 2700 projects for you to bid in the last year. 8. Discount on State Fund Worker’s Comp for Firms that qualify. 9. Levels of Participation – You have the opportunity for all levels of participation from trips to exotic locations and calling in your questions and problems for on the spot help. Or you can just use the on-line plans; safety and business training and updates on industry news and legislation. You decide how much participation you want. Fill out the attached membership application and make your company a part of our construction community today! Membership Application Fax To: 650‐591‐8108 Peninsula Builders Exchange 735 Industrial Road #100 San Carlos, CA 94070 650 ‐591‐4486 support@ConstructionPlans.org Firm Name ___________________________________________________________________________ Telephone _____________________ Fax _______________________ Email _______________________ Name of Owner. ________________________________________________________ Contact Person ____________________________ Title _________________________ Business Address ______________________________ City & Zip ________________________________ Mailing Address _______________________________ City & Zip ________________________________ Email _________________________________________ Website _______________________________ Type of Business _________________________________________________________________ Contractor’s License # ____________________________ Classification ______________________ Membership Statement: This applicant, upon acceptance for membership in the Exchange agrees to abide by all rules and by‐laws of the Exchange. The Peninsula Builders Exchange is a non‐profit, member run association dedicated to improving standards and communications within the construction industry. We have been assisting contractors, sub contractors and suppliers since 1945. Visa / MC ____________/ ____________/ ______________/ _____________ Exp. Date ____________ Name on Card: ___________________________________________ VIN Number _________________ Authorized Signature: ______________________________________________ Date: _____________ Referred By: ________________________________________________________________________ Application Fee of $100 Annual Dues: $400 (Total $500) please include with application Visit us on the internet: www.ConstructionPlans.org www.ConstructionAssistant.com www.ConstructionFinder.com Peninsula Builders Exchange, 735 Industrial Road #100, San Carlos CA 94070 650‐591‐4486(v) 650‐591‐8108(f) support@ConstructionPlans.org New Contractor Seminar How to get a successful start as a sub or general contractor! Building the project is the easy part for starting-out contractors – it’s the other stuff that takes up time and makes problems! This short free seminar will get you started out right to make your business successful! Learn about: Bidding Finding customers Insurance Bookkeeping Managing growth Banks, lines of credit and bonding Employees You have to wear many more hats than just your hard hat! This is a great overview of what you need to do to be successful! This seminar is FREE but it is limited to all Exchange Members plus non-member contractors who have gotten their license after 1/1/2011. Please fill out the enclosed form and let us know you are coming! At the Exchange, Wednesday, March 25th, 2015 From 9:30 AM until About Noon The Peninsula Builders Exchange is a Community Based, Non-Profit, Member run association dedicated to improving conditions in the construction industry. We serve contractors, subcontractors and suppliers. We have been doing this since 1945 Free to all Exchange Members plus New Contractors with license issued after 1/1/2011, but Please let us know you are coming! Please reserve __________ seats in the New Contractor Seminar on Wednesday, 3/25/2015 Name: (Please Print) ____________________________________________________________ Company Name: _____________________________________________________________ Email: ____________________________________________________________________ Phone: _____________________________________________________________________ Mail or Fax to Peninsula Builders Exchange, 735 Industrial Road, San Carlos, CA 94070-3314 Phone: 650-591-4486 Fax: 650-591-8108 Hailed as “Stunning, intense and spectacular” by the Sunday Ex‐ press, this produc on features a brilliant new design by Paul Brown, costumes by the much missed Maria Björnson, a new staging by Laurence Connor – di‐ rector of the recent acclaimed 25th anniversary celebra on at the Royal Albert Hall – and new choreography by Sco Ambler. The produc on is overseen by Ma hew Bourne and Cameron Mackintosh. September 23rd, 2015 at 8:00pm Orpheum Mezzanine at 1192 Market St, San Francisco, California 94102 Deadline for ckets Thursday February 5th, 2015 Yes, Please reserve______Seat(s) for The Phantom of the Opera My Check for $__________($86.00 each) is included. Name:_________________________________________________________________________________________ Company Name:_________________________________________________________________________________ Address:________________________________________________________________________________________ Telephone:___________________________Email:______________________________________________________ Please return with payment to: Peninsula Builders Exchange, 735 Industrial Road, Suite 100, San Carlos CA 94070 Ques ons call: 650‐591‐4486 Cathleen Curl Seminars mall Claims Court Morning Seminar at the Exchange Wednesday, April 1st, 2015 9:30 am to 11:30am *Please arrive on Ɵme to avoid disrupƟng the seminar* Cost per person: Free for members & their employees on payroll $70.00 non members • Prepare your case • Courtroom Presentation Construction Attorney Cathleen Curl shows you how to prepare and win a • What should be included case in small claims court. • What to Avoid An excellent way to collect • Serving the other party those smaller debts • Actual forms for you to use yourself! Please reserve ____ seats for the Small Claims Court Seminar. Space is limited! Check for $ _____(free for member & their employees on payroll, $70.00 Non-member per person) is enclosed or Visa/MC/AE Card # _________-_________-_________-_________ Exp. _____/_____ CVV ______ Name: (Please Print)____________________________________________________________________________________________ Company Name: ________________________________________________________________________________________________ Address:________________________________________________________________________________________________________ Phone:__________________________________Email___________________________________________________________________ Mail or Fax (Credit Card Only) with Payment to: Peninsula Builders Exchange, 735 Industrial Road, Suite 100, San Carlos, CA 94070-3314 Phone: 650-591-4486 Fax:650-591-8108 Defeating the Ten-Year Statute of Repose For Latent Construction Defects It is an all-too-common scenario in California construction: Nine and a half years after completion of a major California construction project, immediately before the 10-year “statute of repose” for suing on “latent” construction defects expires, a lawsuit claiming damages for “recently discovered” latent construction defects is filed. The property owner sues the contractor for the alleged defects. The direct contractor sues all its subcontractors for indemnity and defense. The attorneys spontaneously generate. Experts proliferate. Claimed defects are extrapolated. Four or five years later, after a few dozen attorneys earn a small fortune in fees, the insurance companies make payments. Attorneys collect more fees. The owners take what remains. They repair nothing... and buy vacation homes. Perhaps a cynical view, but there are many in the construction defect world who would reach a similar conclusion. The question is: How can you defeat this seemingly inevitable chain of events? Under a case known as Brisbane Lodging L.P. v. Webcor Builders, Inc. 216 Cal.App 4th 1249 (2013) there may be hope. California Code of Civil Procedure sections 337.1 and 337.15 grant a 10-year “statute of repose” for bringing claims for “latent” construction defects. These statutes allow a lawsuit for such claimed defects to be filed in court up until ten years after the project has been completed. Latent defects are generally defined as those which are “not apparent by reasonable inspection” (CCP §337.15(b)). It is extremely common for such claims to be filed immediately before this 10-year deadline expires. When the lawsuit is brought, the cash register begins to ring. In Brisbane v. Webcor the California Court of Appeal determined that sophisticated parties (e.g. represented by counsel, negotiations took place, etc.) may contractually limit the time periods for filing a lawsuit to less than 10 years. In that case, the court held that a clause in the AIA form A201 construction contract, Art. 13.7.1.1, which provided that all causes of action relating to the work would accrue from the date of substantial completion of the project, was enforceable. This effectively limited the statute of limitations to four years for breach of contract (CCP 337), rather than ten years under the statute of repose (CCP 337.15) The useful contract language is as follows: “As to acts or failures to act occurring prior to [substantial completion], any applicable statute of limitations shall commence and run and any alleged cause of action shall be deemed to have accrued in any and all events not later than such date of [substantial completion]” The project in the case was the construction of a hotel. The hotel owner discovered previously unknown underground plumbing problems five years after the project was completed. The owner filed a lawsuit relying on the fact that because the defect was underground, “not apparent by reasonable inspection” and therefore “latent”, it had 10 years to bring suit. The Court of Appeal disagreed, ruling that because the owner and contractor negotiated their contract freely in an arms-length transaction, even utilizing the assistance of counsel to do so and because the parties were sufficiently sophisticated, the above contractual language meant that the 10 year statute of repose for the delayed discovery of latent defects would not apply. Instead, the 4-year statute of limitations for written contracts would apply. The action was therefore time barred because it was brought more than four years after completion. The message from the case is clear. In California, the 10 year statute of repose for the discovery of latent construction defects can be defeated. First, include a clause in the contract like that found in AIA A201 Art. 13.7.1.1. Next, make sure that the parties engage in negotiation of the contractual terms, even to the extent of both sides having their legal counsel review the contract and negotiate changes. Finally, make sure that the quality of the construction is sufficient to keep you out of court for four years following completion of the work. After these four years the contractor might just be home free. Article written by The Porter Law Group, Inc. in Sacramento, California, 2015. The firm can be reached by phone at (916) 381-7868.
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