VOLUME Construction Advisor Today   ISSUE 127   SEPTEMBER 30, 2011


The right to terminate a contract for the convenience of the project owner is a powerful one. These clauses originated in public construction contracts but are now found in many private contracts as well. The owner can terminate a contract without cause. No justification is necessary. It is for the owner’s convenience. The owner pays for the direct and indirect costs of work performed prior to the date of termination, plus profit on those costs plus reasonable termination expenses. But the owner incurs no liability for what would otherwise be damages for wrongful termination or breach of contract.


One-quarter of all single-family homes built nationally in 2010 earned the federal Energy Star designation, up from 21 percent the previous year. To earn the designation, a home must meet U.S. Environmental Protection Agency guidelines for energy efficiency, be at least 15 percent more energy efficient than homes built to the 2004 International Residential Code (IRC), and include additional energy-saving features that typically make them 20–30 percent more efficient than standard homes.


The Associated General Contractors of America (AGC) and Lean Construction Institute (LCI) have finalized an agreement to promote lean construction through an education program targeted to a wide variety of professionals in the construction community. The agreement, negotiated during the summer, takes effect immediately and will last for at least three years.





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