Gravel2Gavel Construction & Real Estate Law Blog

Today, Pillsbury attorney published her advisory titled Improvements Proposed to Regulations Governing Petitions to the California State Water Resources Control Board. The Advisory discusses the Regional Water Quality Control Board’s recent proposal to amend to Sections 2050, 2050.5, and 2051 of Title 23 of the California Code of Regulations to render petitions on which the Board has not taken action within 90 days of receipt, dismissed by operation of law. The proposed revisions should improve the petition process, but may result in an increase in the number of court challenges to Board decisions.

Today, Pillsbury attorneys Julia Judish and Keith Hudolin published their advisory titled President Takes Action Meant to Increase Pay Equity for Employees of Federal Contractors. The Advisory discusses the April 8, 2014 Executive Order and Presidential Memorandum issued by President Obama aimed at “closing the persistent pay gap for women and minorities,” at least for employees of federal contractors and subcontractors. These two executive actions direct the Department of Labor to issue new regulations that will (i) prohibit government contractors from retaliating against employees and applicants for asking about, disclosing, or discussing their compensation with other workers, and (ii) require contractors to report summary compensation data for their employees, by sex and race, to the Department of Labor. By limiting the reach of these measures only to employers that are government contractors, President Obama was able to act on his own executive authority, without needing the cooperation of Congress. Because government contractors comprise approximately a quarter of the U.S. workforce, these new regulations will directly affect a significant portion of employers, and may also have a ripple effect that extends even to wholly private-sector employers.

UPDATE: CSLB, Before You Turn a Shovel, Make a Call (Summer 2014)

Call 811, a nationwide safety service, is observing “National Safe Digging Month.” As part of the celebration, on April 1, Call 811 kicked off a month-long promotion offering users the chance to “dig” for prizes every day with a virtual shovel. Call 811 will be awarding lucky diggers the chance to win an iPad Mini, Kindle Fire HDX, Apple TV, Jawbone JAMBOX, Samsung Chromebook, Sony Cybershot X50 Camera, $250, $500, Call 811 Shirts, Call 811 Mugs and gift cards from VISA, iTunes, Amazon and Starbucks. Promotion ends April 30.

Sign up and you to can visit Call 811’s website to click 1 of 24 virtual “dirt piles” in hopes of finding a prize notification underneath. 1 dig per day – but look for bonus questions to earn an additional dig. Dig in the wrong area and you could hit a water, gas, power, phone or sewer line, resulting in no prize for that particular day.

California Government Code § 4216.2(a)(1) requires that “[e]xcept in an emergency, any person planning to conduct any excavation shall contact the appropriate regional notification center, at least two working days, but not more than 14 calendar days, prior to commencing that excavation, if the excavation will be conducted in an area that is known, or reasonably should be known, to contain subsurface installations other than the underground facilities owned or operated by the excavator and, if practical, the excavator shall delineate with white paint or other suitable markings the area to be excavated.” Under Section 4216.6(a)(1)-(2), any operator or excavator who negligently violates this law is subject to a civil penalty in an amount not to exceed $10,000, and any operator or excavator who knowingly and willfully violates any of the provisions of this law is subject to a civil penalty in an amount not to exceed $50,000). “Operator” is defined broadly to include “any person … that owns, operates, or maintains a subsurface installation”; it does not include an owner of real property where subsurface facilities are exclusively located if they are used exclusively to furnish services on that property and the subsurface facilities are under the operation and control of that owner. “Excavator” is broadly defined to include “any person … that, with their, or his or her, own employees or equipment performs any excavation.” If you have questions, call your regional notification center.

Additional Source: Hot Diggity – Licensing Board Is Digging Into Excavation Mishaps

We have all heard about 3D-printing by now. The technology of printing something in three dimensions is not new. But how exactly does it work? And more importantly, how could 3D-printing affect the construction industry?

How Does 3D-Printing Work?

Traditional machining techniques are “subtractive.” In other words, take a piece of material and cut or drill excess material to get your desired shape. To the contrary, 3D-printing is “additive.” Basically, the machine prints layers of material, one on top of another, until the desired shape is achieved. The process is somewhat akin to brick-laying, but with much less effort.

The process begins with a model of the object or objects to be printed. Models can be created through a CAD (computer aided design) program or with a 3D scanner.

The printer reads the 3D-model file and lays down successive layers to produce the three dimensional object. The two main manufacturing approaches are powder approach (as seen in this video), which creates the shape of the object by adding a binding agent to the powder and the polymer approach (seen here), which pumps out fine drops of polymer and cures the material with UV rays. The result of either approach is the same – a three dimensional object that was created by a printer.

How Can 3D-Printers Affect the Construction Industry?

The technology of 3D-printing has been around for a years, with 3D-printers becoming commercially available in the early 2010s. Researchers have been utilizing 3D-printing to further medical research and testing on various organs. In addition, 3D-printers have been used to print guns, clothes, shoes, and even food.

But what could 3D-printing do for the construction industry? “In the future, we will print our houses.” (Video.)

At last year’s 3D Printing Conference, Professor Behrokh Khoshnevis of The University of Southern California’s School of Engineering, lecturing about Contour Crafting, conveyed the very real prospect of constructing large scale structures, buildings in particular, with 3D-printing.”

According to Dr. Khoshnevis and his team, “Contour Crafting technology has great potential for automating the construction of whole structures as well as sub-components. Using this process, a single house or a colony of houses, each with possibly a different design, may be automatically constructed in a single run, embedded in each house all the conduits for electrical, plumbing and air-conditioning.” Dr. Khoshnevis’ 3D-printing technology uses concrete to build walls, which he believes is the future of the construction industry.

Meanwhile, last month in Amsterdam, a group of dutch architects began 3D-printing an entire house. The 3D Print Canal House, the brainchild of DUS Architects, is an architectural research project, testing the limits and capabilities of 3D-printing buildings. The house is being made of plastic and is expected to take 3 years to complete, which would hardly seem like a realistic alternative to traditional construction. Nevertheless, this project could serve as a breakthrough in construction using 3D-printing.

Other companies are jumping on the bandwagon offering 3D-print house construction kits and assembling villages of 3D-printed houses.

It remains to be seen how 3D-printing will alter the construction industry, but it is definitely a trend worth watching.

On Friday, April 11, 2014, the California Contractors State License Board issued a News Release confirming that drywall work on the “$150 million, 45-story Pinnacle Towers construction project in downtown San Diego has stopped after the [CSLB] determined the sub-contractor hired for the work, Clayton Wall & Ceiling Systems Inc. (Clayton), is not properly licensed in the state of California.” The News Release further confirmed that “[o]n April 4, 2014, investigators with CSLB, California Department of Industrial Relations (DIR), and the San Diego District Attorney’s Office, responded to an industry lead and performed an unannounced inspection of the construction site.” They “determined that drywall work began in January 2014, even though the company has not yet completed the licensing process.” The CSLB issued an administrative citation to Clayton for acting in the capacity of a contractor without a license and assessed a civil penalty of $15,000, as permitted by Cal. Bus. & Prof. Code § 7028.7. DIR’s Division of Labor Standards Enforcement (DLSE), also known as the Labor Commissioner’s Office, also cited Clayton for performing services without a valid state contractor license and assessed a $64,000 fine.

The News Release reported that the primary contractor, Pinnacle International Development Inc. (Pinnacle), contracted with Clayton on August 8, 2013 for the $6.34 million drywall job. Then, on December 3, 2013, Clayton applied for a California’s contractor’s license. “When it comes to contracting without a license the law is very clear,” said CSLB Registrar Steve Sands. “You cannot enter a contract to work, or actually do any work until you’re licensed. There’s no gray area here.” California law defines “contractor” broadly to include “any person who undertakes to or offers to undertake to, or purports to have the capacity to undertake to, or submits a bid to, or does himself or herself or by or through others, construct, alter, repair, add to, subtract from, improve, move, wreck or demolish any building, highway, road, parking facility, railroad, excavation or other structure, project, development or improvement, or to do any part thereof, including the erection of scaffolding or other structures or works in connection therewith …” It includes subcontractors and specialty contractors.

“An employer operating without a license creates an unfair advantage over businesses that follow the rules,” said DIR Director Christine Baker. “This case shows how the Labor Commissioner’s Office works effectively with other state agencies to enforce the law and protect workers and business in California.” Pinnacle may also face administrative action for contracting with a non-licensee.

The News Release further confirmed that Clayton’s license application will be on-hold until the fines are paid or until an appeal is heard. This will delay Clayton’s ability to work on the San Diego project, or any other project in the state. In addition, the Labor Commissioner’s investigation of the business will remain active.

Labor Commissioner Julie A. Su warned that “Scofflaws should know that state agencies are sharing information and finding violations that might have previously been overlooked.” “In challenging economic times it’s important to protect honest businesses from being put at a competitive disadvantage, and workers from being given less than their earned wage.” Su said.

Although not all states regulate contractors by requiring either licensure or registration, Virginia, like California, is one that does. In late March, at the Virginia Board for Contractors (Board) meeting, the Board issued 24 license revocations. Copies of the file orders are available online using the Board’s website’s License Lookup tool, a tool that permits users to look up disciplinary actions occurring on or after April 1, 2002 by searching using key terms. For additional information about contractors’ licenses that have been revoked and other actions by the Board, visit the Board’s Press Release Archives.

The Board is responsible for licensing businesses engaged in the construction, removal, repair, or improvement of facilities on property owned by others. Virginia contractor licenses consist of two parts: (1) the class of license (A, B, or C), which determines the monetary value of contracts/projects that may be performed, and (2) the classification/specialty, which determines what type of work is allowed. The Board also licenses individuals and firms engaged in residential building energy analysis, which involves evaluation of energy consumption and recommendations to improve energy efficiency. It also regulates individual tradesmen who engage in the trades of electrical; plumbing; heating, ventilation, and air conditioning (HVAC); gas fitting; water well construction; elevator mechanics; backflow prevention; and building energy analysis.

Virginia also has reciprocal licensing/examination agreements with other jurisdictions. For more information, check out its website.

Additional Sources: North Dakota Joins California in Cracking Down on Unlicensed Contractors; CSLB Zaps More than 120 Unlicensed Contractors In Simultaneous Undercover Stings; Fall California Licensing Blitz Stings 75; R-E-C-I-P-R-O-C-I-T-Y ~ Find Out What It Means To You

In its Newsletters, the California Contractors State License Board (CSLB) includes a short licensing quiz at the end. Below are the questions in its Spring 2014 Newsletter. How many questions can you answer correctly?

“1. True or False: An applicant can get a new ‘B’ license without testing if he or she is already acting as an ‘A’ class qualifier on an existing license.

2. True or False: If an applicant doesn’t meet the experience requirements, CSLB will refund the application fee.

3. If education or apprenticeship time is granted to an applicant, what is the minimum amount of hands-on journey-level work experience that must be verifiable? a. 1 year b. 2 years c. 4 years
4. A licensee has ______ days to comply with an outstanding liability entered on a license? a. 90 days b. 60 days c. 30 days
5. True or False: You are forbidden by law (B&P Code section 7071.13) from listing in your ‘advertising, soliciting, etc.,’ that you are bonded.

6. May a home improvement salesperson[] work for more than one contractor?
a. Yes b. No”

For the answers, Spring 2014 Newsletter.
For additional licensing quiz questions, CSLB Newsletter Archives.

Additional Resources: A + B + C (40 + 30) = California Contractor License Classifications (and Subcategories); CSLB Laws and Regulations

In its Spring 2014 newsletter, the California Contractors State License Board announced that “[w]ithin the next year, CSLB will have issued one million licenses since its creation in 1929. That means someone who is obtaining, renewing or changing a license status with CSLB during this time will be license recipient No. 1000000.” As of the date it published its Newsletter, the CSLB had issued “nearly 992,000 licenses.” It projected that, “[a]t its present rate, the one millionth license likely will be issued around Jan. 1, 2015.” Will you be the one to end up with the bragging rights that your California contractor’s license number is 1,000,000? The CSLB confirmed that “[w]hoever is the ‘lucky’ one millionth license holder will get a mention and picture in a future newsletter.”

Additional Source: CSLB, One Million Licenses: CSLB Nears Milestone Mark (Apr. 3, 2014)

The California Contractor State License Board (CSLB) recently issued notice of its upcoming Legislative Committee Meeting. The agenda for the meeting indicates that a legislative update will include review of pending Assembly Bills 1702, 2165 and 2396, and Senate Bill 1467. The meeting will be held at the CSLB’s headquarters located at 9821 Business Park Drive, Sacramento, CA 95827, in the John C. Hall Hearing Room. The teleconference location for the meeting will be at 265 Hegenberger Rd., Suite 200 Oakland, CA 94621. (The meeting may be canceled without notice. For verification of the meeting, call (916) 255-4000 or visit the CSLB’s website. Webcasts of the CSLB’s earlier Legislative Committee Meetings are available on its website.]

The California State Legislature website provides the public with access to the full text of the current legislative bills. Below are summaries from Assembly Bills 1702, 2165 and 2396, and Senate Bill 1467:

Assembly Bill 1702 (Maienschein) – “This bill would provide that an individual who has satisfied any of the requirements needed to obtain a license while incarcerated, who applies for that license upon release from incarceration, and who is otherwise eligible for the license shall not be subject to a delay in processing the application or a denial of the license solely based on the prior incarceration, except when the incarceration was for a crime substantially related to the qualifications, functions, or duties of the business or profession.”

Assembly Bill 2165 (Patterson) – “This bill would require each board to complete within 45 days the application review process with respect to each person who has filed with the board an application for issuance of a license, and to issue, within that 45 days, a license to an applicant who successfully satisfied all licensure requirements. The bill also requires each board to offer each examination the board provides for the applicant’s passage of which is required for licensure, a minimum of 6 times per year.”

Assembly Bill 2396 (Bonta) – “This bill would prohibit a board from denying a license based solely on a conviction that has been dismissed [as contemplated by select provisions of existing law].” As explained in the bill, existing law “prohibits a board from denying a license on the ground that the applicant has committed a crime if the applicant shows that he or she obtained a certificate of rehabilitation in the case of a felony, or that he or she has met all applicable requirements of the criteria of rehabilitation developed by the board, as specified, in the case of a misdemeanor.” It also “permits a defendant to withdraw his or her plea of guilty or plea of nolo contendere and enter a plea of not guilty in any case in which a defendant has fulfilled the conditions of probation for the entire period of probation, or has been discharged prior to the termination of the period of probation, or has been convicted of a misdemeanor and not granted probation and has fully complied with and performed the sentence of the court, or has been sentenced to a county jail for a felony, or in any other case in which a court, in its discretion and the interests of justice, determines that a defendant should be granted this or other specified relief and requires the defendant to be released from all penalties and disabilities resulting from the offense of which he or she has been convicted.”

Senate Bill 1467 (Lieu (Chair), Berryhill, Block, Corbett, Galgiani, Hernandez, Hill, Padilla, Wyland, and Yee) – Under the Contractors’ State License Law, the CSLB licenses and regulates contractors. Under existing law, there is within the board a separate enforcement division that is required to rigorously enforce the Contractors’ State License Law. As the bill explains, “[e]xisting law specifies that persons employed as enforcement representatives in this division, and designated by the Director of Consumer Affairs, are not peace officers and are not entitled to safety member retirement benefits. This bill would make technical, nonsubstantive changes to these provisions.”

Additional Resource: California Contractors State License Board