Volume: 6, Issue: 34 - 08/25/2017
By Bruce Jervis
The problem of inconsistent dispute resolution mechanisms is widely acknowledged in the construction industry. An owner-contractor agreement calls for binding arbitration, but the subcontracts do not, allowing suits in court. The designers have no agreements with the constructors and no incentive to coordinate dispute resolution mechanisms. Read more.
Volume: 6, Issue: 33 - 08/18/2017
By Paul Levin, PSP
In the typical construction project, the general contractor (GC) is committed to submitting a baseline schedule to the owner for approval. Because of the requirement for the baseline to be submitted prior to or within 30 days of the notice to proceed, the submitted baseline will contain either sufficient detail (if the contractor can get away with it) or be put together based upon how the GC’s project manager envisions the way the job will play out. Savvy GCs will reach out early on and ask their major subs for input before they submit the baseline, but this doesn’t happen often. It’s time for subcontractors to be more proactive in being involved in schedule development. Surprisingly, everyone wins when they do. Read more.
Volume: 6, Issue: 32 - 08/11/2017
If a project owner extends the performance period for an early phase of the work, shouldn’t it follow that the project completion deadline would be extended commensurately? Not necessarily. A recent decision illustrates that the prior extension must involve work on the schedule’s critical path – the sequence of work on a project which will take the shortest time to complete. Read more.
Let’s be blunt; we’re all responsible for our own safety, right? Jobsite safety has a negative ROI, so project management really does not want to spend much time or money on it. Isn’t it just common sense to, for example, wear protective googles when using a nail gun? The workers, who are often pressured to complete the job in the shortest possible time, often don’t want to bother with it. Perhaps workers don’t want to take the time to look for the safety googles, or they’ve been doing this for so long that they don’t want to change. Read more.
Volume: 6, Issue: 31 - 08/04/2017
Despite all the best efforts, claims and disputes are likely to arise on your projects. This article provides keys to help you avoid claims during the dispute phase which starts during and overlaps with the construction phase.
You'll learn about how negotiation teams, decision ladders and dispute resolution boards can help keep you out of court. Read more.
Volume: 6, Issue: 30 - 07/28/2017
Contractors choose to operate as corporations or limited liability companies for a number of good reasons. One is to isolate financial responsibility at the company level, without recourse against the individual company owners. For this to be effective, however, the individuals must respect the integrity of the business entity. Read more.
Volume: 6, Issue: 29 - 07/21/2017
By: Robert D. Chesler and Allen R. Wolff, Anderson Kill P.C.
A New York appeals court has narrowed the conditions under which a party named as an additional insured can access the policyholder's policy for liability coverage. Businesses that make use of additional insured coverage -- as parties to construction projects generally do -- should take note. Read more.
Volume: 6, Issue: 28 - 07/14/2017
Project owners have legitimate concerns regarding the subcontractors utilized by their contractors. Quality of work is an obvious concern. Issues of job site safety and security also arise. Public project owners have limited control over their contractors’ choice of subs. Private owners have broader discretion, but this authority is not foolproof. Read more.
Volume: 6, Issue: 27 - 07/07/2017
By Stephen Hess
“Substantial completion” is largely viewed as the contractor’s big payday when retention is released and the contractor finally collects a large share of its profits. At the same time, substantial completion has many other ramifications under most form contracts.
Many state laws use substantial completion as an important milestone as well for purposes of calculating statutes of limitations and statutes of repose (which in turn govern when lawsuits must be commenced) as well as lien rights. Read more.
Volume: 6, Issue: 26 - 06/30/2017
By Bruce Jervis
The cynical view of contractor licensing requirements is that they are intended to generate revenue and restrict competition. The broader view – and official public policy – is that licensing schemes protect consumers and project owners. And, the statutes are effectively enforced through provisions that make it impossible for an unlicensed contractor to sue for payment for its work. Read more.