Benefits
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Advocacy
Protects business essentials of operation and ensures it stays protected in California and Nationally. Without ASA your rights could be abrogated! Education Provides practical knowledge to owners, executives and ALL staff to do their work better, stay up-to date and succeed. Networking Direct connection and collaboration with client's, trade partners, and industry-specific service provides. Membership at the local, state & national levels A whole lot more! Join below or see Become a Member Page for more info! |
Government and industry advocacy initiatives to improve the business environment for construction subcontractors |
For under $75 per month, your membership provides a return on investment many times over!
We don't solve our problems or succeed alone, it takes like-minded, real world partners at every level to truly support our business.
Don't go it alone, join your industry partners to ensure the continued success of your staff, work, and business!
Don't go it alone, join your industry partners to ensure the continued success of your staff, work, and business!
ASAC BOD Annual Meeting at the historic Capitol, Sacramento
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Subcontractor's Legislative Conference & Meet Your Representatives, Sacramento
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Legislative Conference Panel on Insurance, Bonding & Subcontracts, Sacramento
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BASA Economic Forecast Event, NorCalNECA Zero Net Energy Center, San Leandro
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ASA's SUBExcel2020 Women in Construction during WICWeek
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Advocacy/Government:
Without representation, your rights could be abrogated! As a member of BASA, your business is a member of American Subcontractors Association California (ASAC), who is your eye at the state level and ASA National, who is your eye nationwide. Both are keeping their eye on state and federal matters and decisions that may affect your business. The ASA groups are watching to make sure laws that affect you as a trade contractor or supplier are in YOUR favor. ASAC is the group that successfully sponsored Notice of Completion legislation, which helped to secure 5% retention on public works projects (SB 293), and indemnification reform (SB 474), along with other victories! Directed by the ASAC Government Relations Committee and Board of Directors, a professional Legislative Advocate works on behalf of subcontractors and suppliers in Sacramento. His job is to represent you and your business’ needs to the state legislature and protect your interests. Not everyone enjoys the political arena, and not everyone can participate – ASAC/ASA provides people who can and will take on that responsibility for you, so you can tend to your business. Each year the ASAC GRC volunteers and Legislative Advocate evaluate the needs of industry trade contractors and suppliers to possibly sponsor legislation, and also to review bills that could affect their business that are on the docket for the term. These volunteers are all employed within the industry, whether trade contractors, suppliers or industry service providers, so they truly understand the needs of industry trade contractors and supplier businesses with regard to protection and support. Volunteers are also subcontractors and work for subcontractor firms, who volunteer to learn, engage and become an integral part of the process that supports their business and other subcontractors. Who knows the business better than those of us that work in it every day? By joining, you are protecting your business, job and the industry. We invite you to get involved! Why should you care about what happens in other states or on a national level? Did you know legislation and statutes in others states could affect California subcontractors? Being a California subcontractor does not insulate your business from legislation passed in other states or at the federal level. Your membership and involvement keeps you informed of amended and new laws in other states and federally. This protects your business from negative affects from afar...it keeps your finger on the pulse of laws that could eventually make their way across state lines...we see it all the time. More than three-quarters of the construction performed in the United States is performed by subcontractors. Whether you're a small, family-owned subcontractor working primarily on small renovations or a multi-million dollar commercial subcontractor, your work is subject to:
EDUCATION: You can’t run your business without knowing the latest laws and methods. Your local ASA chapter, ASA California and ASA national can help keep you and your employees informed. The more your employees understand and know how business is affected, the better tools they have to do a great job for you. Members receive newsletters and updates from the national association, updates and calls to action from ASA California and local news and events from the chapter. NETWORKING: BASA/ASAC/ASA brings subcontractors and suppliers together, because no company is in this industry is alone. All members are welcome at chapter and state meetings, held both in person and via teleconference. These meetings are where decisions are made that affect your business operations as subcontractors and suppliers. ASAC meetings include the discussions regarding issues subcontractors and suppliers may face and plans are made for legislative work. From these meetings come the proactive government relations stances taken by ASA California, which are promoted before the construction industry and the state legislature. SUPPORT: Membership and funding provides ASAC & ASA the ability to continue its legislative work that supports and protects California’s trade contractors and suppliers statewide. WACA (Wall and Ceiling Alliance) formerly known as NCDCA (Northern California Drywall Contractors Association), has been a supporter of ASAC since 1990 when the group joined the Bay Area Chapter and donated funding to ASAC. Gwynda Downing of member company James R. Downing Inc., stepped right into the fray as she helped lead the successful effort to amend the Business and Professions Code relating to contractors and prompt payment laws. She and ASAC were also instrumental in getting Change of Venue laws on the books, making contractors who work in California file their suits in California instead of their home state. Union Roofing Contractors Association (URCA) has made sizable donations to ASAC, with the intent of supporting ASAC legislative efforts from Indemnification Reform to Retention Payment Reform and beyond. URCA has been a member of the ASA Southern CA Chapter since 2005. Thanks to Ron Johnston, Ph.D., the association’s Executive Director, and to the individual URCA members who encourage their Board of Directors to make this monetary gesture. Ron is very active as an ASAC Director and Government Relations Committee Member. He brings a wealth of knowledge and experience to the table in his work for trade contractors through these seats and the URCA. National Association of Electrical Contractors (NECA) has been an unwavering partner with the ASA groups for decades, along with other trade-specific associations. TOGETHER, we are victorious! We are the are the ONLY voice exclusively for ALL Subcontractors & Suppliers in the construction industry on issues such as Retainage, Payment Practices, Indemnity & Insurance Without representation at the Capitol in Sacramento, subcontractors and suppliers would be at the mercy of other groups who have lobbyists. ASAC has very competent representation in Skip Daum, our Legislative Advocate. Skip is in Sacramento watching for legislation that you need to Support, Amend, or Oppose that materially affect your business. These issues are brought to the ASAC Government Relations Committee, chaired by Dan McLennon, Esq., for discussion and decisions, and appropriate action is then taken to make sure the laws passed in California are not detrimental to ASAC members. Court actions are reviewed by Scott Holbrook, our Legal Counsel at Crawford and Bangs, LLP. Scott also counsels ASAC on corporate affairs. In addition, other member attorneys and members provide input and keep leadership advised of legal happenings. We know you are busy and may not have time to do this, nor do most of us have the expertise. Therefore we trust ASAC to handle this for us, where we can be assured it is being done well. It is also a great place to learn how to be a part of protecting your business alongside the experts to mentor and guide you. You need not have prior experience, only a desire to support the cause of protecting your business organization. We'll be by your side to guide and support you through the learning process. We are working for you even as you go through your daily duties. Your continued support ensures your business is protected, and your rights are not abrogated. |
Victories in California
Retention Reform-Public Works – AB 2173 (2022) Effective 1/1/23 secures 5% retention perpetually. ASAC has been in the forefront and heavily supported 5% retention bills. Previous bills included AB 92 (2017) Effective 1/1/18: Extended SB 293 (2011) through 1/1/2023. The huge victory was won in 2011 when SB 293 was signed by Governor Brown capping retention at 5% (for non-substantially complex projects-see AB 1705).
Win in critical “Pay When Paid” California Case (April 2020): The American Subcontractors Association made a significant win for subcontractors in Crosno Construction, Inc. et al v. Travelers Casualty and Surety of America. In 2019 ASA/ASAC produced a friend-of-the-court brief affirming a California Superior Court’s judgment regarding “pay when paid” provisions used to withhold payment from a subcontractor. On April 17, 2020, the California Court of Appeals ruled in favor of subcontractors to limit enforcement of “pay-when-paid” clauses that delay those payments to subcontractors. Public Contracts Payment - AB 1223 (2017) Effective 1/1/18: Requires within 10 days of making a construction contract payment, a state agency that maintains an Internet Web site to post on its Internet Web site the project for which the payment was made, the name of the construction contractor or company paid, the date the payment was made or the date the state agency transmitted instructions to the Controller or other payer to make the payment, the payment application number or other identifying information, and the amount of the payment. Exempt from these provisions are construction contracts valued below $25,000 and specified progress payments published in the California State Contracts Register under existing law. Public Contracts Payment - AB 1705 (2013) Effective 1/1/15: In 2014 ASAC successfully sponsored this bill which closed a loophole in SB 293 (2011, effective 1/1/12), to define/delete what public project is “substantially complex.” Without a clear definition any project could be deemed “substantially complex” and the 5% cap on retention could be exceeded. The bill requires agencies to explain why they determined a project to be substantially complex and to disclose that to bidders along with the increase in retention if applicable. The bill also extended the “sunset” to Jan.1, 2018. Governor Brown signed the bill, which became effective January 1, 2015. NECA co-sponsored this legislation. Payment Protection - AB 164 (2013) Effective 1/1/14: Governor Jerry Brown signed this ASAC bill requiring the developer to provide payment and performance bonds, in a manner similar to the Little Miller Act, on Public/Private Partnerships (3Ps) in California. 3Ps, is an emerging trend whereby the public provides lands that are being developed by private companies that have no legal obligation to pay contractors. The contractors have no lien rights because the land is publically owned, there is no public money to go after with a Stop Notice, and payment and performance bonds WERE not required to be in place. Much of the money for these 3Pprojects comes from outside the United States. The developers are forming LLCs and other protected entities. If the project goes bad or gets canceled, the developer can bankrupt the LLC and move on without paying anybody -- there was no recourse for the contractors. Beginning 1/1/2014, payment and performance bonds must be in place, providing payment remedies for subcontractors and suppliers, and ensuring that the project will be completed for the public entity. Indemnification Reform - SB 474 (2012) Effective 1/1/13: ASAC has always supported the idea that the person indemnifying has no obligation to defend actions or proceedings prior to a preliminary or final determination of liability. Neither should that person be liable in any amount that exceeds the finally determined percentage of liability, based upon comparative fault. In 2012 Governor Brown signed SB 474, which establishes a proportionate, or comparative, liability standard that holds each party responsible only for the damage it causes and defense costs for that damage. The new law improves California’s statute, which, when other parties are not solely at fault in the past allowed subs to be held responsible for 100% of the injuries, damage, and defense costs arising from other parties’ mistakes. The new law applies to public and private construction contracts entered into on or after Jan.1, 2013. One of the principal supporters of this bill was ASAC. Bottom line is if a claim has nothing to do with your work you will not have to pay for someone else’s mistakes. Payment Protection - Amicus Brief in Eggers Industries v. Flintco, Inc. (2012): 2nd tier supplier is “subcontractor” when providing manufactured items pursuant to specifications entitled to lien, payment bond and stop payment notice rights. ASA submitted Amicus Brief in support of contractors in this case and it resulted in a published opinion supporting contractors. Retention Reform-Public Works - SB 293 (2011) Effective 1/1/12: Retention reform has always been an important issue for ASAC. There is no quick solution to this problem that has developed over the years, but ASAC persists in chipping away at it as the occasion arises. A huge victory was won in 2011 when SB 293 was signed by Governor Brown, effective 1/1/12 capping retention at 5% (for non-substantially complex projects-see AB 1705 above). AB 92 (2017) Effective 1/1/18: Extended through 1/1/2013. SB 293 caps retainage from the owner to the prime contractor at 5% on state and local public contracts entered into between Jan. 1, 2012 and Jan. 1, 2016. State law already prohibits a prime contractor from retaining more from a sub than the owner retains from the prime. The new statute also improves the state’s prompt payment law by requiring upper-tier contractors on public projects to pay lower-tier contractors within 7 days of receiving a progress payment. Previously, upper-tier contractors had 10 days to pay. This bill was supported by ASAC, AGC and many construction trade organizations. While ASAC didn’t sponsor this bill, we did get language added that helps preserve subcontractors’ late bond claim rights. Mechanics Lien Law – SB 189 (2010) Effective 7/1/12: In 2011 ASAC monitored the California Law Revision Commission (CLRC) as they reviewed and proposed revisions to the state Mechanics Lien Law. The resulting changes were presented to the legislature in SB 189 (Lowenthal), with additional changes presented in SB 190. SB 189 was a complete overhaul of all Mechanic Lien statutes. A massive 244 pages long, it recodified code sections, made substantive changes in law, and might have inadvertently overruled or called into question recent court rulings that are beneficial to sub-trades. A group of construction associations, ASAC included, determined that the measure needed thorough analysis in order to accept, support or oppose the proposed revision to the codes. A team of eminently qualified attorneys agreed to represent the sub-trades and trade associations and take on this task. This team delivered to the CLRC a 25-page executive summary (supported by over 100 pages of detailed analysis) setting forth trades’ concerns and recommendations about the draft bill. These concerns were accepted by the CLRC and the bill was amended accordingly. Obviously, ML's protect our businesses. We must defend our members in this issue. ASAC helped organize the “SB 189 – Trade Contractor Legal Analysis Group”, recruited other associations to the cause, and helped fund the work done by the attorneys. SB 189, was signed by Governor Schwarzenegger in September 2010 and became law with a much needed implementation delay to July of 2012. That date gives the organizations time to educate members so they can comply with the ML law from the start. Owner Implied Warranty - Amicus Brief in Great American v. LAUSD (2010): Owners implied warranty of plans. ASA submitted Amicus Brief in support of contractors in this case and it resulted in a published opinion supporting contractors. Insurance - Amicus Brief in Vandenberg v. Superior Court (1999): Insurance obligation in CGL insurance policy, may provide an insured coverage for losses pleaded as contractual damages (as opposed to only if plead as negligence claim). ASA submitted Amicus Brief in support of contractors in this case and it resulted in a published opinion supporting contractors. Payment Protection (1997): In 1997 ASA formed SLDF and wins first case – eliminating pay-if-paid clauses in California. The California Supreme Court Declares A Pay If Paid Clauses Are Void: The leading opinion on pay if paid clauses in California contracts was issued by the Supreme Court of California in 1997 for the case Wm. R. Clarke Corp. v. Safeco Insurance Company (15 Cal.4th 882). ASAC monitors and is active on many bills each term, whether it be by providing support on bills that are beneficial to your business, opposing bills that negatively affect your business, testifying to the legislature with hard fact information subcontractors have provided to us (some subs testify themselves with our support and assistance), providing Amicus briefs (Friend of the Court) on cases, etc. We can’t do this without subcontractor’s membership and involvement, along with member volunteers that work in the industry. |
Critical documents updated and added to the ASA Info Hub!
Don't miss out on this exclusive MEMBER ONLY benefit! We are excited to announce that there are new documents now available in the Resources section of the ASA Info Hub! Recently added resources include:
Not utilizing the Info Hub? Click here to set up your account. Your username will be your firstname.lastname and you get to set your own password. Check it out! 10/23/19 |
Donate to the SLDF at: https://members.asaonline.com/ap/donate/qep0z4L2
Each year, courts across the country hand down hundreds of decisions on federal and state laws, as well as court-made or "case" law, that apply to subcontractors' businesses. Many of the decisions impacting subcontractors interpret the contract provisions of subcontract agreements—provisions like pay-if-paid, hold-harmless, duty-to-defend, and no-damages-for-delay. Some of these decisions are precedent-setting and carry significance for subcontractors across state lines.
ASA's Subcontractors Legal Defense Fund supports ASA's critical legal activities in precedent-setting cases to protect the interests of all subcontractors. ASA taps the SLDF to fund amicus curiae, or "friend-of-the-court," briefs in appellate-level cases that would have a significant impact on subcontractor rights. From its inception, the SLDF has been involved in many landmark decisions, starting with its first case in 1997, Wm. R. Clarke Corporation v. Safeco Ins., which prohibited pay-if-paid clauses in California. For a summary of recent cases ASA has been involved in, read ASA's SLDF Activity Report. Know of a decision that could set a precedent impacting subcontractors, and want ASA to get involved? Send your completed SLDF application to [email protected]. |
