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Association News - June 2004
Texas Supreme Court Recognizes Subcontractors Pass-Through Claims

Construction subcontractors scored a decisive legal victory April 16 when the Texas Supreme Court ruled that the state recognizes subcontractors' pass-through claims. (See Construction Law, page TK)

The American Subcontractors Association, which has six chapters and a state organization in Texas, filed a "friend of the court" brief supporting the validity of pass-through claims, which are made when a general contractor presents a subcontractor's payment claim to an owner on the subcontractor's behalf. The recognition of pass-through claims gives subcontractors an avenue to recover owner-caused damages without being forced to sue the general contractor.

The Texas high court had never addressed the issue of pass-through claims before, but in its unanimous opinion, it said, "After examining the authority from Texas and other jurisdictions, we join the majority view and recognize pass-through claims in Texas."

"What an incredible step forward for the construction industry in Texas," said 2003-04 ASA president Rick Wanner. "The Texas Supreme Court studied the legal and business relationships in today's construction industry and drew the right conclusion: Privity of contract and pass-through claims are compatible. Denying this right to subcontractors would have clogged the courts with needless lawsuits."


Walter P. Moore Wins 2004 Award for Reliant Stadium

The American Institute of Steel Construction recognized 11 projects in its annual Engineering Awards of Excellence competition. The program recognizes engineering excellence and innovation in steel-framed buildings.

The jury of three included one Texan, Lawrence A. Fuess, principal of Dallas-based L.A. Fuess Partners Inc.

The national winner in the $100 million or greater category, the highest revenue category, went to Walter P. Moore and Associates Inc. of Houston for Reliant Stadium.

The jury called the project "an impressive structure accommodating a myriad of complex requirements." And the jury added, "The scale of the opening roof and the supporting 'super trusses' is a recognizable feat of structural design."


Moore Erection Recognized by American Institute of Steel Construction

San Antonio-based Moore Erection LP was recently recognized by the American Institute of Steel Construction as a Certified Advanced Steel Erector.

Companies that are AISC certified have been through a thorough initial evaluation and are subject to yearly reviews.

The AISC considers specific projects as well as general management, procurement, operations and quality control. The institute determined that Moore is qualified to provide services necessary for erection of structures that include large public and institutional buildings and heavy-manufacturing plants. Also: bunkers and bins, major bridges, continuous girder bridges, railroad bridges, power houses, major industrial facilities, locks and dams, high-rise structures greater than 10 stories and repair and rehabilitation of existing steel structures.


Linbeck Receives Two National Safety Awards

Houston-based Linbeck received a National Construction Safety Excellence Award from the Associated General Contractors of America. Linbeck was awarded second place for Best Safety Program in the Country in the category of building construction companies with more than one million person-hours per year.

"We are very proud to have received this award in this highly competitive program," said Chuck Greco, the company's CEO and president. "This is the first time we have been recognized nationally for our exceptional safety program. Our company-wide commitment to safety, innovative programs, partnership with OSHA and behavior-based safety initiative was in great part how we distinguished ourselves in this competition."

The panel of judges included professionals from OSHA, the Army Corps of Engineers, the AGC and others in the industry. It used the following criteria for award selection: overall company safety program, employee involvement in safety, new programs or resources to promote safety, management's commitment to safety, specific unique activities the company does to promote safety and having no fatalities or multicatastrophic injuries in the past year.


Masonry Society Joins USGBC

The Masonry Society recently became a member of the U.S. Green Building Council to help provide technical expertise and knowledge related to masonry, its characteristics and how it is manufactured, designed, constructed and in many cases reused

Associated with TMS joining the USGBC, TMS has also created a Sustainability Subcommittee to help form positions to take to the USGBC for consideration.


EPA Won't Establish Effluent Limitation Guidelines

The Associatiated General Contractors of America recently praised the Environmental Protection Agency for announcing that the agency will not establish effluent limitation guidelines for the construction and development industries.

The AGC said the decision was "a great victory for everyone who values common sense as much as the environment."

"Our members want and intend to be good stewards of the environment," said Stephen E. Sandherr, CEO for the AGC. "They take environmental issues very seriously. It just didn't make any sense for EPA to implement more changes to its storm-water program before it completely evaluates the effects of its existing regulations."


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