The Construction Counselor

It has long been the rule that a general contractor does not owe a duty of care to employees of subcontractors absent some exception. However, that rule has not always been consistently applied by district courts and juries.

On April 25, 2025, Governor Kim Reynolds signed into law Senate File 574, which amends Iowa Code Chapter 573 by, among other things, reducing the maximum retainage that may be held by public owners on Iowa public construction projects from 5% to 3%.

When homeowners discover defective construction, it can be difficult to understand and remedy the issues. It can be even more difficult to determine which parties are responsible. The Iowa Court of Appeals recently offered some clarity in Yakel v. Wheeler.

As those in the construction industry know, Iowa Code Chapter 573 governs public projects in Iowa in many aspects, including setting forth the rights and obligations of those involved in public projects in regard to retainage. From time to time, there are disputes in the interplay between the various provisions of this chapter and questions about the balancing of the rights among the various players in the project—the project owner, the general/principal contractor and the subcontractors.

On Wednesday, April 10, 2024, Governor Kim Reynolds approved Senate File 455. This new law limits the ability of cities and counties to regulate topsoil and stormwater on construction sites.

The construction industry continues to face challenges in securing qualified workers for their projects, with some companies turning to staffing agencies and temporary workers to solve this challenge. Companies turning to this solution need to be aware of the unique legal and practical considerations of doing so, as illustrated in the recent Iowa Court of Appeals case of Calabretto Building Group v. Tradesmen International, LLC,.