Claim settlement agreements can be drafted any which way. Sometimes they are drafted with broad, general language. Sometimes they produce unexpected consequences. Parties signing claim settlement agreements need to be aware.
A South Dakota supplier of aggregate was twice victimized by faulty material testing: prior to bid submittal by an independent laboratory hired by the supplier and after contract award by the state highway department. The supplier sued the state and settled for a stipulated amount. The supplier then sued the testing laboratory. But there was a problem. Read more.
The public procurement system at all levels of government has embraced “best value” contracting. The rationale is that sealed bidding, with award to the low price bidder, is inflexible and does not always provide the best deal for the public. The experience and resources of the contractor, as well as the technical strengths of its proposal, may justify a price premium. Read more.
This past October, we covered construction of the Sacramento Golden One Credit Unit Stadium in an aerial view 3-minute video. This week we watch the first 18 months construction of the Atlanta Falcon's new home, the Mercedes-Benz Stadium, go up in under a minute. Click here to see the videos and link to the live web-cam.
On a public works contract, a “sovereign act” is the ultimate government defense to a contractor claim for additional compensation. A sovereign act occurs when the public project owner, the government agency, establishes a policy that is public and general in nature. The government is acting in the interest of public health or safety. The act is not directed at a particular contractor and not intended to nullify rights under a particular contract. And, a sovereign act does not provide economic advantage to the government under a contract. Read more.
Tasked with building a new cable car atop Germany's highest peak, this construction crew, aided by a serious helicopter, erected this tower crane under breathtaking conditions. Watch the video to see the challenges this erection crew tackled along with a time-lapse sequence of the complete crane erection here.
Any contractor preparing to bid or sign a contract should be concerned about the project owner’s ability to pay for the work. It matters not whether the owner is public, corporate or nonprofit. It is important to ascertain whether the necessary funds have been appropriated, borrowed or otherwise set aside for the project. Read more.
Schedule delays and disputes over time extensions or impact costs are a major source of claims on a construction project, often because the contractor did not prepare a comprehensive or accurate baseline schedule or did not properly update the schedule as work progressed. The owner’s failure to detail the required information in the project’s scheduling specification or to timely review schedule updates can also contribute to scheduling failures.
Purposes of Project Scheduling
Scheduling requirements on a construction project help ensure that all activities required by the contract documents to be performed by the contractor to complete the work are properly planned, adequately staffed, appropriately coordinated and executed in an orderly and expeditious manner. Depending on the nature and scope of the project, a construction schedule can be as simple as a list of activities that are organized in a logical, time-scaled sequence. However, on large construction projects such simple schedules are likely not adequate to meet their intended purpose. Read more.