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• New Federal Rule Will Redefine When Commercial Truck Drivers Are ‘On Duty’ and Limit ‘Work Week’
   
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• Learn How to Improve Your Profit Margin in Jan. 10 ASA Webinar
   
• Platinum Sponsor CNA — Creating an Environment of Lowered Business Risk

• California’s S.B. 293, signed into law (Chapter 700, Statutes of 2011) by Gov. Jerry Brown (D) on Oct. 9, 2011, which caps retainage at 5 percent on state and local public contracts entered into between Jan. 1, 2012, and Jan. 1, 2016. Because current state law prohibits a prime contractor from retaining more from a subcontractor than the owner retains from the prime, the law’s effect is a 5 percent cap on retainage that can be held on subcontractors. The new law improves the state’s prompt payment law by requiring upper-tier contractors on public projects to pay lower-tier contractors within seven days of receiving a progress payment. Previously, upper-tier contractors had 10 days to pay. The new law also exempts laborers from the state’s payment bond preliminary notice requirement.
• Texas’ H.B. 2093, signed into law (Chapter 1292) by Gov. Rick Perry (R) on June 17, which dramatically limits the ability of other parties on a private or public construction project to transfer risk to subcontractors when subcontractors are not at fault. The law bans broad-form indemnity clauses in private and public construction contracts and mandates that “a consolidated insurance program that provides general liability insurance coverage must provide completed operations insurance coverage for a policy period of not less than three years.” The law also makes additional insured requirements in construction contracts “void and unenforceable,” except on consolidated insurance programs and for personal injury claims.
• Texas’ H.B. 1456, also signed into law (Chapter 271) by Gov. Perry on June 17, which creates statutory lien waiver forms, both conditional and unconditional, for progress payments and final payment on construction projects. As a result, subcontractors and their clients will not have to manage an unpredictable patchwork of lien waiver forms.
• Alabama’s H.B. 56, signed into law (Act No. 2011-535) by Gov. Robert Bentley (R) on June 9, which requires companies with state contracts to begin using the federal E-Verify system by Jan. 1, 2012, to confirm employees’ legal status to work. It also provides that companies will have their business licenses suspended after a first violation and permanently revoked after a second violation of the law.

San Antonio, Texas

Daryl Steinbeck

Vice President

14100 San Pedro Avenue Suite 101

San Antonio, Texas 78232

Phone: 210-558-1880

Fax: 210-558-1881