Bah-Humbug – Michigan Legislature Fails to Pass Statute of Limitations Reform Bill

Posted by: Hilger Hammond On: 28th December 2010 | no responses.

 

Bcapitol domey Benjamin H. Hammond

Proposed Senate Bill 882 would have revised the statute of limitations for bringing an action against an architect, professional engineer, land surveyor, or construction contractor.  This bill was introduced in September of 2009 and passed by the Senate.  There was great anticipation by many that the House would pass the bill in this lame duck session; however, the Speaker of the House did not choose to bring the matter to a vote in the final legislative session.
It is anticipated that yet another attempt to limit the statute of limitations will be introduced in early 2011.  With the Republican control of the House, it is likely that such a bill will pass during the next legislative session.

Proposed Legislation Would Reward New LEED Certified Construction

Posted by: Hilger Hammond On: 14th December 2010 | no responses.

''By:  Mark A. Rysberg

 

Michigan Senate Bill 1111-1114 (2010) provides financial incentives for construction and renovation projects achieving LEED certification.  Based on the level of certification obtained, a project can enjoy a property tax reduction somewhere between 20-50% of the post-development ad valorem taxes plus a limited exemption from the State Education Tax.  Importantly, the bill only allows for 25 projects to be granted the State Education Tax exemption annually.

 

 Leed Certification


Attaining LEED certification requires navigating a process designed to take a project from conception through certification.  The steps LEED identifies can be summarized into three categories; registration, application and certification.  The initial registration process is the gateway into the process of LEED certification.  The costs of registration can range from $900-1200.  Once a project is registered, it enters the application phase.  During this phase the design team compiles a set of documents with unique LEED requirements.  Once the documents are complete, the application is submitted for review and the owner pays an application review fee ranging from $2,500-30,000 depending on the size of the buildings.

 

The project is then audited to see how closely it was able to comply with the specific LEED requirements.  Each requirement is allocated a point value for certain environmental design components.  The total possible point allocation is 120 with certifications available at 40-49 points (Basic), 50-59 points (Silver), 60-79 points (Gold), and 80 points or above (Platinum).  Upon completion of the audit, or application review, the project is awarded the appropriate level of certification.  Based on the proposed legislation, the level of certification will dictate the amount of tax incentives available for the project.

 

The proposed legislation has a laudable purpose–promoting environmentally sustainable and efficient construction.  However, the question has been posed by some in the industry whether the LEED certification process is the most environmentally efficient and effective process to meet the intent of the proposed legislation (here).

Michigan Builder’s Trust Fund Act: Contractor Jailed for Not Paying Sub

Posted by: Hilger Hammond On: 10th December 2010 | no responses.

By Benjamin H. Hammond and Mark A. Rysberg

Pay moneyDid you know that you can actually go to jail for “robbing Peter to pay Paul”? Recently, the Michigan Building Contract Fund Act, commonly known as the Builders’ Trust Fund Act (“Act”) requires you hold monies paid to you for the benefit of “the person making the payment, contractors, laborers, subcontractors, or materialmen.” When projects go south it is often difficult to comply with this requirement. In early 2010, the Michigan Court of Appeals upheld a criminal conviction under the Act even though the builder who received the funds claimed that he used the funds to pay himself for work he performed. People v Wedel, Unpublished Opinion Docket No. 290324 (Mich App 2010). This case is a strong reminder that one must be very careful with the funds that they are paid – not paying your sub could get you a trip to the local jail.

Class Action Lawsuit Filed Against USGMC

Posted by: Hilger Hammond On: 1st December 2010 | no responses.

December 1, 2010

By: Mark A. Rysberg
glass building

Henry Gifford, owner of Gifford Fuel Saving, filed a class-action lawsuit against the U.S. Green Building Council (USGBC) and its founders. Mr. Gifford alleges that the USCGBC intentionally misrepresents that LEED certified buildings are more energy efficient than non-LEED certified buildings. Mr. Gifford also claims that USGBC’s representations about LEED performance have steered consumers toward chasing LEED certification and away from using non-LEED affiliated consultants, like Gifford. The next step will likely determine if the lawsuit will proceed as a class-action lawsuit. Certifying a class for purposes of such lawsuit is a steep uphill climb for Mr. Gifford.