By Bruce Jervis
A recent ruling by a Tennessee court should give project owners heartburn. The Tennessee Court of Appeals ruled that an owner’s withholding of liquidated damages was a “claim” within the meaning of the AIA general conditions. The owner was required to give formal written notice of claim within 21 days after the contractual completion deadline passed. Failure to do so waived the owner’s right to $237,000 in liquidated damages.
The Tennessee court rejected the project owner’s contention that the withholding was automatic and self-executing, authorized in advance under the express terms of the contract. And the withholding was more than a mere calculation of how much was due upon the next payment. The withholding was a “claim,” subject to the claim procedures of the contract. ... Read more.
Featured in this Week’s Construction Claims Advisor:
- Withholding of Liquidated Damages Required Compliance with Claim Procedure
- Proposal Showed Sequence of Work but Not Phasing
- No Subcontract Formed Due to Scope of Work Disagreement
By Steve Rizer
When writing the specifications for a Leadership in Energy and Environmental Design (LEED) green building project, it is important to spell out -- clearly -- what the minimum requirements are for commissioning, Sustainable Design Consulting Senior Consultant Linda Davisson told attendees of last week’s Ecobuild America conference in Washington, D.C. “Having a Division 1 section that clearly addresses what the minimum requirements are for commissioning is highly recommended. If you just have a drawing package, then you need to make sure that it’s in your drawing package. You cannot miss the commissioning requirements because it is a requirement. You cannot pursue LEED without it.” Click here for some of the other advice she offered during her presentation, entitled "Specifying for a Successful LEED Project: Words Matter."
By Steve Rizer
“You don’t have to be experts” to participate in the process to develop the next version of the National Building Information Modeling Standard – U.S. (NBIMS-US), Jeffrey Ouellette, vice chair of the National BIM Standard v3 Project Committee, stressed to construction professionals attending the Ecobuild America Conference last week in Washington, D.C. The committee is looking for volunteers to sit on various subcommittees and workgroups for Version 3, which is expected to be finalized in early 2014. “This is a peer-based group…. We need to hear from industry in order to do this right; otherwise, it’s just going to be pushing from the top down.” ... Read more.