On March 25, the Senate is expected to pass the ԹϺ-supported Paycheck Protection Program (PPP) Extension Act that would extend the deadline for taking out a PPP loan through June 30, 2021. Importantly, while the legislation extends the deadline for loan approval through June 30, borrowers’ applications must be submitted to their lenders by May 31. The House previously passed the bill, and President Biden is expected to sign it if and when it reaches his desk. Without congressional action, the program’s authorization will expire on March 31, 2021. The extension will give construction firms more time to apply for PPP loans, as many firms see waning backlogs.
ԹϺ Enters into Negotiations with SBA; Hoping for Settlement of PPP LawsuitԹϺ Member Wins Forgiveness of PPP Loan Over $2 Million
Late last week, the Associated General Contractors of America (ԹϺ) continued its campaign to persuade the U.S. Small Business Administration (SBA) to change the way it decides whether to forgive Paycheck Protection Program (PPP) loans of over $2M. The specific target of ԹϺ’s campaign is a Loan Necessity Questionnaire that has greatly surprised and frustrated the borrowers of such loans, as they now seek forgiveness of them.
ConsensusDocs is pleased to announce that Fox Rothschild LLP has joined as a contributor to the ConsensusDocs Construction Law Newsletter, which is one of the mostly widely distributed and used construction law resources in the industry.
Association Weighs Legal Options
Association Continues to Push for Changes to Form Itself
Together, ԹϺ of America and its Michigan Chapter have extended the association’s long string of successful efforts to establish that the commercial general liability insurance (CGL) policy sold to construction contractors across the United States does provide coverage for property damage resulting from unexpected and unintended defects in a subcontractor’s workmanship (unless one of the policy’s specific exclusions applies). On June 29, 2020, the Michigan Supreme Court became the latest of many state supreme courts to agree that such damage is an “occurrence.”
Together, ԹϺ of America and its Maryland Chapter have plugged a potential loophole in standard contract provisions intended to preclude costly litigation over the damage that a project suffers during construction. The association’s victory in Maryland’s highest court means the standard provisions will continue to have their intended effect, precluding litigation over property damage that the builder’s risk insurance will cover.
On March 25, ԹϺ called on the Cybersecurity and Infrastructure Security Agency (CISA), a division of the Department of Homeland Security, to issue a revision to recent COVID-19 related guidance that will explicitly include all construction workers as “Essential Critical Infrastructure Workers.” The absence of the word “construction” from many of the critical infrastructure workforces described in the guidance has become problematic as many state and local governments appear to be overlooking the memorandum and evaluating only the descriptions included under the various listed critical infrastructure workforces. In the few instances where construction is noted or, perhaps, implicitly referenced in the list, significant confusion has arisen. It is imperative that CISA issue a technical correction to this guidance to avoid states and localities from creating a confusing patchwork of regulations that would inhibit the full industry’s essential role in helping address the COVID-19 outbreak and protecting national security.
Construction Firms Are Already Taking Steps to Protect Employees, Most of Whom Already Wear Protective Equipment, While Halting Work Will Undermine Efforts to Add Hospital Capacity