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VOLUME Construction Advisor Today   ISSUE 77   OCTOBER 15, 2010

 

A debate has simmered for decades as to whether a standard commercial general liability (CGL) insurance policy covers a contractor for the defective workmanship of its subcontractors. The policies, standardized by an insurance industry group, protect a contractor against property damage caused by an “accident.” The policies expressly exclude coverage for the contractor’s own work. But is the shoddy workmanship of a subcontractor an accident which is covered by the policy? The state courts are almost evenly divided on this issue.


 

The U.S. Department of Energy (DOE) has proposed penalties against 27 companies for allegedly selling products in the United States without certifying that they comply with energy-efficiency and water-conservation standards.


The 27 companies include manufacturers, importers, and private labelers of appliance, plumbing, and lighting products.
 

Collectively, the notices propose penalty fees exceeding $3.5 million, though these fines may be reduced if the companies quickly comply with certification requirements, according to DOE.  Unless companies address these claims within 30 days, DOE will file actions either in U.S. district court or with an administrative law judge to demand payment of the proposed penalties.


 

Will "integrated project delivery" (IPD) fade away? The term might, but not necessarily the concept, according to a report that five organizations released earlier this month.

 

"The term 'integrated project delivery' may fade away and be replaced by the newest way to describe collaboration, but a recognition that the power of people working together with a shared vision and common goals will always be much greater than any individual working alone will last forever," the report states.


 

 

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