CLARIFYING WIDESPREAD MISUNDERSTANDINGS ABOUT CONSTRUCTION LAWS AND PROCEDURES

Transcription

1 CLARIFYING WIDESPREAD MISUNDERSTANDINGS ABOUT CONSTRUCTION LAWS AND PROCEDURES MSBO 76 th Annual Cnference May 7,

2 Abut the Presenters Dana L. Abrahams, Esq. Clark Hill PLC 151 S. Old Wdward Ave., Suite 200 Birmingham, Michigan Jeremy S. Mtz, Esq. Clark Hill PLC 151 S. Old Wdward Ave., Suite 200 Birmingham, Michigan

3 What s n Tap? The Players in Cnstructin Prjects The Delivery Methds fr Cnstructin Prjects Understanding the Laws Cmmn Misperceptins The D s and Dn ts This dcument is cmprised f general infrmatin relative t the subject matters discussed herein. It is nt intended t give legal advice and des nt establish any attrney-client relatinship. Schl Districts facing specific issues shuld seek the assistance f an attrney. 3

4 The Cnstructin Players There are varius players that may be invlved in a Cnstructin Prject. The Owner (i.e., the Schl District) The Architect The Cnstructin Manager The Owner s Representative The Technlgy Designer The General Cntractr The Cntractr The Sub-Cntractr The Surety Nt all f these players will be invlved in every cnstructin prject. It depends n the delivery methd utilized by the Owner. 4

5 Delivery Methd Owner with General Cntractr Architect Owner General Cntractr Subcntractr Subcntractr Subcntractr Subcntractr 5

6 Delivery Methd Owner with Cnstructin Manager 6

7 Delivery Methd Owner with CM and Owner s Representative 7

8 Understanding the Law The Revised Schl Cde MCL et seq. MCL Cnstructin, Additin, Renvatin r Repair f Schl Buildings Mnetary Threshld fr Applicability - $22,766 ( Cst f Cnstructin Prject ) Requirement t btain Cmpetitive Bids Fr cnstructin, repair r renvatin f, r additin t, a new r existing schl building All material AND labr Advertisement Requirements In newspaper and State s Website ( Buy4Michigan ) Specific infrmatin required in advertisement Familial Affidavit required Reservatin f Rights Bid Bnd Requirements Michigan-Based Business Preference 8

9 Understanding the Law The Revised Schl Cde MCL et seq. MCL (3) Requires that the design r cnstructin f schl buildings used fr instructin r nn-instructinal purpses cmply with requirements f Schl Building Cnstructin Act. Schl Building Cnstructin Act MCL et seq. Mnetary Threshld fr Applicability - $15,000 ( Ttal Cst ) All plans and specificatins fr the cnstructin, renvatin, repair r remdeling f a schl building must be prepared by an architect r prfessinal engineer licensed in Michigan. Architect, prfessinal engineer r ther persn qualified t supervise cnstructin must supervise the cnstructin f a schl building. May NOT dispense f architect r prfessinal engineer after they prepare plans/specificatins. Authrized Department f Licensing and Regulatry Affairs ( LARA frmerly DELEG) t administer Act and Single-State Cnstructin Cde Act. Design-Build Only permitted fr energy cnservatin imprvement prjects (MCL a) 9

10 Understanding the Law Iran Ecnmic Sanctins Act MCL (Public Act 517 f 2012) Applicability - ALL requests fr prpsals (cmpetitive bids) issued by public entity. Public Entity includes schl districts and intermediate schl districts. Requires cntractr submitting prpsal t certify that it is nt an Iran Linked Business as defined in the Act. Cntractr s Bnd fr Public Buildings and Wrks Act MCL et seq. Mnetary Threshld fr Applicability - $50,000 ( Cntract Amunt ) Requirement fr Perfrmance Bnd Prtects Owner if Cntractr des nt perfrm Must be at least 25% f Cntract Amunt Requirement f Payment Bnd Prtects materialmen/suppliers and subcntractrs against nn-payment by cntractr since lien n public prperty is prhibited. Must be 25% f Cntract Amunt Surety must be licensed in Michigan Be aware f ntice requirements if elect t invke the Bnd 10

11 Cmmn Misperceptins f the Law State Website Psting Requirements Has changed t Buy4Michigan Schl district must pst all dcuments t administrative site Link back t schl district website n lnger viable Emergency Exceptin under MCL Only applies t repairs in emergency situatins Emergency = health, safety, welfare issues N Sle Surce Exceptin Definitin f Schl Building can be brad MCL a Schl Building includes all buildings used fr schl purpses MCL a(1)(f) Building means a cmbinatin f materials, whether prtable r fixed, frming a structure bnding a facility r shelter fr use r ccupancy by persns, animals r prperty MCL a(1)(z) Structure means that which is built r cnstructed, an edifice r building f any kind, r piece f wrk cntinually built up r cmpsed f parts jined tgether in sme definite manner. 11

12 Cmmn Misperceptins f the Law LARA Issues Delegated authrity under MCL Apprval f Plans Permits and Licensing Minr Repair Exceptins Electrical Exceptins (< $100) N Plumbing Exceptins Certain Use Requires Lcal Reviews Examples that require lcal review: Cell Twers Driveways/Access Entries Sanitary/Strm Sewer and Water Supply Systems Traffic Cntrl Wetlands 12

13 Cmmn Misperceptins f the Law Cmmn Prjects ften nt viewed as Cnstructin Playgrund Equipment Field Turf Installatin Demlitin f Buildings Re-Opening f a Previusly Clsed Building Third-Parties wh perfrm wrk as part f ther services Cntractrs wh perfrm cnstructin as part f ther services may still be required t cmply with Cnstructin Laws and may require LARA and Lcal review Examples that may require dual purpse LARA and Lcal submittals: Cell Twer Installatins Leasing f Buildings 13

14 Cnstructin D s and Dn ts DO hire design and management prfessinals wh special in schl cnstructin. DON T have Bard apprve prfessinal befre cntract is fully negtiated. DO submit prttype Cntractr Agreement, alng with General and Supplementary Cnditins, t Schl s legal cunsel. DON T rely upn legal dcuments prepared by Architect r Cnstructin Manager. DO read and verify all bid, perfrmance and payment bnds. DON T accept frm f bnd that is less prtective than AIA frm. DO require Architect and CM t take respnsibility fr requiring adequate insurance fr the specific cntract in questin. DON T rely upn the standard insurance requirements f AIA dcuments have yur insurance carrier review. 14

15 THANK YOU! Any Questins? **** This dcument is nt intended t give legal advice and des nt establish any attrney-client relatinship. It is cmprised f general infrmatin. A Schl District facing specific issues shuld cnsult with its attrney. 15