VOLUME 1   ISSUE 17   AUGUST 27, 2012


By Bruce Jervis


Assurances of payment are common on construction projects. Nothing will affect the willingness of a contractor, subcontractor or supplier to perform more than a legitimate fear of nonpayment. An assurance is sought. The other party, eager to avoid disruption to the project, extends an assurance. What happens when that assurance proves to be unfounded?


In a recent case out of Arkansas, a prime contractor threatened to take a set-off against a concrete supplier due to delay. The supplier said it would continue delivering material to the site only if it was assured of timely payment in full of all invoices. The contractor provided an unequivocal assurance. The supplier, relying on that assurance, continued deliveries. ... Read more.


Featured in this week’s Construction Claims Advisor:

  • Federal Project Owner Had No Duty to Intervene with State Regulators
  • Contractor’s Failure to Honor Payment Assurance Was Not Fraud
  • Agency Could Not Increase Technical Ratings without Documentation


By Steve Rizer


There are many potential remedies to problems associated with using the controversial, more-than-a-half-century-old Eichleay Formula in construction estimating, but certain steps need to be taken for those remedies to work, Navigant Construction Forum Executive Director James Zack told a group of professionals attending a webinar that WPL Publishing held earlier this month. Zack and fellow presenter David Halligan, associate director of Navigant Global Construction Practice in San Francisco, summarized a slew of potential remedies during the interactive event, entitled “Practical Problems with Pricing Delay Using Eichleay.”


“All of these remedies have to be included in your contract documents before you bid it, so you need to think about this during the design phase, project planning phase, and, frankly, you need to think about them only after seeking competent legal advice in your jurisdiction because some of the things that we suggest here, while they may be allowed in some jurisdictions, may not be allowed in others,” Zack told a target audience of public and private owners, construction managers, contractors, subcontractors, consultants, architects, engineers, and attorneys. ... Read more.


By Steve Rizer


The American Society of Heating, Refrigerating, and Air-Conditioning Engineers (ASHRAE) has introduced for public comment a draft standard that would identify the minimum acceptable commissioning process for buildings and systems as described in ASRHAE’s Guideline 0-2005, The Commissioning Process. It is expected to become the first ASHRAE standard focused on the commissioning process. The public comment period for proposed Standard 202P is scheduled to end Oct. 1.


By taking the best practices from the guideline, first published in 1989, and writing a standard, the requirements can be adopted by code bodies and used by standards developers, according to Gerald Kettler, chair of the Standard 202P Committee. “The proposed standard will benefit the industry by ensuring that the built environment industry follows the owner’s quality-oriented process for achieving, verifying, and documenting that the performance of buildings, systems, and assemblies meets defined criteria. Standard 202P will support the requirements in other ASHRAE standards and programs.” ... Read more.


By Treighton Mauldin


More often than not, software right out of the box can be very intimidating, no matter how simple or complicated. Synchro can easily be among the software that makes your palms a little sweaty. ... Read more.





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