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Davis Brown Construction Law Blog

Construction Industry Legislative Update - February 6, 2019

The 2019 Legislative Session has gotten off to a quick start in terms of construction industry-related bills that have been introduced. The Davis Brown Law Firm and the various statewide construction and design industry associations are all hard at work for you. Below are a few highlights regarding such legislation. We will continue to update you on these matters.

SF6 - Contractor Warranties

This bill would have a large impact on construction law in Iowa and a negative impact upon most of the construction industry by, among other things, mandating that all commercial and residential contractors’ written/express warranties would, by operation of law, pass to all subsequent equitable or legal owners of the property. The bill would also require information relating to contractor warranties to be mandatorily disclosed by sellers as part of their real estate disclosure statements.

On January 22, 2019, a subcommittee met to discuss this bill. Jay Iverson, Executive Officer and Chief Lobbyist of the HBA of Iowa, and Davis Brown attorney Jodie McDougal spoke at the meeting to educate Senators on the potential impact of the bill. The HBA of Iowa and most other major statewide construction industry associations attended the meeting to express their concerns and otherwise monitor this bill. MOST WITHIN THE CONSTRUCTION INDUSTRY ARE AGAINST THIS BILL.

HSB2 - Project Delivery Contract Methods

This bill would, in short, allow government entities to utilize certain alternative project delivery contract methods without competitive bidding.  Such project delivery methods include design-build projects and construction manager-at-risk projects. This would be a substantial change for public projects. Opinions within the design industry versus the construction industry differ regarding this bill.

HSB33 - Insured Homeowners Protection Act

This bill started as an overly broad statute imposing various new requirements upon certain residential remodelers, but is currently being rewritten to be more narrowly focused on so-called storm chasers.

HSB15 - Contractor Registration and Bonding Requirements

This bill relates to several new contractor registration and bonding requirements for home improvement contracts.

Other bills being monitored

  • HF9 - Apprentice Electrician
  • HF27 - Project Labor Agreements
  • HF28 - Prevailing Wage
  • SSB1026 - Home Improvement Fraud
  • SF79 - Apprentice Learning Interactive Distance
  • SF81 - Homestead Rebate Program