Baker Bricks

A fresh – and sometimes sideways – view of the construction industry, delivering our no-nonsense take on both national and international news. Tune in for brief posts tackling issues you may never have thought about.

Bonds Required on Federal Construction Projects Even if Contract is Silent

The Federal Circuit Court of Appeals very recently issued an important decision in K-Con, Inc. v. Secretary of the Army which requires a construction contractor to provide performance and payment bonds, even though the contract does not expressly require it. The Court relied on the Christian Doctrine to incorporate into the contract, as a matter of law, bond requirements from the Federal Miller Act that were not physically written in. read more…

Alabama Home Builders Now Required to Disclose Insurance Status

Although licensed home builders in Alabama are not required to maintain liability insurance, a new law requires them to disclose whether or not they have such insurance prior to the commencement of construction. The insurance disclosure must be signed by the home builder and the homeowner, as well as a witness selected by the homeowner. This will require home builders to modify their normal practice of engaging with homeowners for new work. Home builders may wish to build the insurance disclosure into their written contract for construction, as long as there is also a place for the homeowner’s witness to also sign. This new law is codified at Alabama Code Section 34-14A-19, and went into effect on June 1, 2018.  Failure to comply may lead to sanctions by the Home Builders Licensure Board.

China’s Belt and Road Initiative Is Changing the World

In 2013, China announced its plan to fund and construct a global transportation and infrastructure network known as the Belt and Road Initiative (“BRI”). Since that time, BRI projects have helped China to become a rival to the United States and European Union on the geo-political scene. They have also allowed Chinese companies to close the gap with their western counterparts in the global construction, engineering, advanced manufacturing, and logistics sectors. Western companies and governments need to take notice or risk being left behind. read more…

Alabama Home Builders Challenge Requirement to Use Architects on Townhouses

The Alabama Homebuilders Association of Alabama, Inc. (the Homebuilders) has sued the Alabama State Board for Registration of Architects (the Board) seeking to invalidate a regulation that requires an architect for the design of townhouses. Alabama’s code exempts from the practice of architecture the making of plans and specifications for the construction of “single-family residence buildings.” The Board’s regulations state that an architect is not required for design of a “detached single-family residence.” read more…

Game Winning Strategies to Ensure Your JV Performs at the Varsity Level

Although the air may not be cool and crisp yet, it is August, and in the South, that means football season is just around the corner.  Perhaps it is “football brain” that drove our thoughts in presenting recommendations for creating and running a successful joint venture (“JV”), resulting in the analogies discussed below.  However, we believe it is more than that.  A successful joint venture, much like a successful football program, requires thoughtful planning during the inception phase, strong leadership with well-defined roles, and careful risk management. Coin-toss, kick-off, and read on to learn effective ways to make your JV perform like it is playing on the varsity team.
read more…

CONTACTS

ARCHIVES