By Bruce Jervis
It is standard for construction contracts to require that each payment application include affidavits and lien waivers. The mandate can be quite detailed: a complete list of all subcontractors and suppliers furnishing labor or materials to the project; a sworn affidavit that these parties have been paid in full to date; receipts reflecting those payments; and lien waivers – partial or complete – from those parties as well as the party applying for payment.
The detailed nature of these provisions inevitably leads to sporadic or inconsistent enforcement by the party making payment. But it would be a mistake to assume the requirement is mere “boilerplate” of little concern. A recent case out of Mississippi is an example. ... Read more.
Featured in this Week’s Construction Claims Advisor:
- Indemnification Clause in Subcontract Ruled Unenforceable
- Sub Fails to Submit Lien Waivers and Forfeits Retainage
- Flawed Solicitation Justified Cancellation after Exposure of Bid Prices
By Steve Rizer
Early, continuous contractor input is one of the keys to a successful guaranteed maximum price (GMP) arrangement, Trauner Consulting Services Inc. Director Richard Burnham told a group of professionals attending a webinar that WPL Publishing held earlier this month. “If we want to succeed in a GMP, we want the general contractor involved early, and we want him involved throughout the design-development process.” During a presentation entitled “Making GMP Contracts Work for You,” he offered the following other advice to a target audience of owners, contractors, engineers, and their attorneys:
By Steve Rizer
What are the realistic chances that the new Alliance Commission on National Energy Efficiency Policy (ACNEEP) plan for doubling U.S. energy productivity by 2030 will be implemented? Despite recent successes in getting energy-efficiency policies passed into law, advocates may find it difficult -- if not impossible -- to get the blue-ribbon commission’s ambitious blueprint for change fully carried out, given the sheer number of steps that would need to be taken by so many diverse groups.
The highly publicized “Energy 2030” plan, released earlier this month, contains at least 45 specific recommendations for improving energy efficiency across the country and relies upon Congress; the U.S. Department of Energy (DOE); U.S. Environmental Protection Agency (EPA); U.S. Department of Housing and Urban Development (HUD); the White House Office of Management and Budget (OMB); American Society of Heating, Refrigerating, and Air-Conditioning Engineers (ASHRAE); International Code Council (ICC); state and local governments; public utility commissions (PUCs); and others to do their part in implementing it. Will all of the players cooperate? ... Read more.