Publication
New proposed amendments to Competition Act target net-zero claims
New amendments to Bill C-59 introduce a novel misleading advertising provision that targets broad environmental representations, including “net-zero” type claims.
Author:
United States | Publication | July 2019
Texas’ newly enacted House Bill 1999 (“HB 1999”) allows those designing or constructing a public building or public work to inspect and repair alleged defects prior to institution of litigation by the public entity. Aimed at quelling preventable litigation and saving taxpayer money when a contractor can and will satisfy its contractual requirements, this Texas “right to repair” could start a national trend to codify, solidify and clarify a design professional’s or contractor’s right to cure defects.
Further, the concept—that a construction owner or developer must first provide an opportunity to inspect and correct—could expand into private construction projects, especially in instances where private owners or developers utilize some form of public funding, financing or incentives.
HB 1999 evolved from concerns that groups of Texas attorneys had regularly encouraged local governments to sue contractors and design professionals for defects prior to providing notice or an opportunity to inspect or cure.
HB 1999 not only covers new construction, but also applies to improvements, additions and repairs or alterations. Under the new law, government entities must provide contractors and design professionals with a written report describing the defect, 30 days to inspect the defect, and an additional 120 days to repair (or enter an agreement to repair) the defects.
Although the bill does not apply to transportation and highway projects, it does apply to other projects for the state, cities, counties, school districts and local government bodies. Within Texas, HB 1999 raises questions and concerns for public entities, contractors, design-professional and subcontractors, specifically with respect to the following:
Outside Texas, construction owners, developers, design professionals and contractors should anticipate the potential spread of legislation like HB 1999 to other states and the potential expansion of the contractor notice-and-cure rights to quasi-public and privately funded projects.
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New amendments to Bill C-59 introduce a novel misleading advertising provision that targets broad environmental representations, including “net-zero” type claims.
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