VOLUME 4   ISSUE 25   JUNE 26, 2015


By Bruce Jervis


When public project owners solicit bids for construction contracts, they establish a deadline for submittal. But owners do not commit to awarding a contract immediately after bid opening. They often allow themselves 60, 90 or even 120 days to evaluate bids or proposals. Bidders assume prompt contract award at their peril. Read more.


Featured …


While the FAA has eased up on restrictions with its proposed new rules, “333” exemptions issued under the current regulations still require the operator to have a pilot’s license.  This does not seem to be holding up companies from wanting to deploy drones; more than 2,500 requests have been filed. Driven by anticipation of the FAA new rules expected to be issued later this year or in 2016, investment in companies providing drone hardware and services to contractors is also growing. Read more.

From Previous 3 Issues:
Volume: 4, Issue: 24 - 06/19/2015


By Bruce Jervis


Unabsorbed home office overhead has long been a controversial form of delay damages. The rationale is that if work on a contract is suspended, the contractor is unable to bill against that contract and the contract does not carry, or absorb, its proportionate share of the fixed home office expenses. Project owners complain that these are phantom damages used to inflate delay claims. The ongoing home office expenses would have been incurred in any event. Read more.


Featured …


Last week, we introduced some of the issues field personnel must deal with in collecting and entering accurate time-card data for cost-control purposes. Today, we explore more details in the process of measuring production plus steps management and field supervisors can take to further improve accuracy.  Meaningful and timely data are key to uncovering possible problems and more accurately forecasting completion cost and schedule. Read more.

Volume: 4, Issue: 23 - 06/12/2015


By Bruce Jervis


The right to terminate a contract for convenience, without any fault on the part of the contractor, is a right reserved to the project owner under the terms of many construction contracts. Advance written notice triggers the termination. The contractor is paid the cost of work performed prior to termination, profit on that cost and the expenses of the termination itself. Read more.


Featured in this week's Construction Claims Advisor...


A cost-control system exists for two purposes—to develop meaningful costs for historical record keeping (presumably to aid in future estimating) and to keep track of a job so problems can be identified and corrected while they are still manageable. The success of the first objective depends on the success of the second. The second objective has an immediate impact on a contractor’s ability to manage its jobs, and is the subject of this article.  Read more.

Volume: 4, Issue: 22 - 06/05/2015


By Bruce Jervis


Project owners, both public and private, have moved enthusiastically to the “design/build” method of procuring construction services. This is perceived as a faster, more efficient way to accomplish a construction project. And, by assigning some design responsibilities to the contractor, there is a reduction in claims arising out of construction details. Read more.




Working with general contractors around the country has shown us effective and not-so-effective methods for managing costs. Some approaches are so tedious it is worrisome about the time it takes a project manager to manage the project as well as the data necessary to “manage” costs.  In April and May, we looked at cost control issues encountered by heavy and highway contractors. In today's issue, we address cost scenarios that affect general contractors.  Read more.

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