VOLUME 1   ISSUE 13   AUGUST 01, 2012


By Bruce Jervis


Project owners require contractors to furnish performance bonds for an important reason – the bond guarantees completion of the project. Performance bonds are expensive. Hence, the premium is factored into the contract price. Why, then, are project owners so cavalier in their administration of bond claims that they repeatedly lose their rights against the bond?


Performance bonds spell out preconditions to the surety’s obligation. These include prompt written notice of the contractor’s default, a proper termination of the construction contract for default, and an opportunity for the surety to elect a method for completing the project. One repeatedly sees instances in which the project owner has failed to satisfy one or more of these preconditions, thus forfeiting the owner’s rights against the bond. ... Read more.


Featured in this week’s Construction Claims Advisor:

  • Project Owner Lost Right to Enforce Performance Bond
  • Subcontractor Recovers Increased Bond Premium
  • Subcontractor Claim Stayed Pending Outcome of Federal Claim


By Steve Rizer


Certain reference standards can prove to be very helpful resources when assessing the costs and benefits associated with green building, Triple Green Building Group LLC Principal Kelly Gearhart told a group of construction professionals attending a recent WPL Publishing webinar. Such resources include Appendix G of American Society of Heating, Refrigerating and Air-Conditioning Engineers’ (ASHRAE) Standard 90.1 (2007) as well as standards from the U.S. Environmental Protection Agency (EPA) and the Sheet Metal and Air Conditioning Contractors’ National Association (SMACNA). ... Read more.


By Treighton Mauldin


In the years that I have been using 4D (scheduling) and 5D (estimating) planning, I have encountered many hurdles, the most significant of them involving mismatched and mismanaged expectations. Nothing derails a building-information-modeling (BIM) process worse than when a manager asks you to produce something that you know, for reasons involving time, budget, or technology, is not feasible, hears your concerns about completing such a task, and then asks, “Well, can’t you just put it in the computer? If not, then why am I paying for all this?” The best way to avoid such a scenario is to establish a clearly defined set of BIM standards.


By Steve Rizer


Although it has yet to be widely implemented, lean construction is gaining momentum, according to a white paper that Rider Levett Bucknall (RLB) recently released. In the report, entitled “Status of Lean in the U.S. Construction Industry,” the company stated the following: “Is lean construction a fad? While the industry has been slow to accept and adopt lean construction, indicators show that the trend is shifting.” Click here to see the evidence that RLB pointed to as proof that lean construction is gaining traction.





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