By Bruce Jervis
One of the perceived benefits of the design-build method of construction is the ability to “fast-track” the project. By procuring design and construction services from a single source, it is possible to commence construction before all of the design details have been completed. Shorter total elapsed project duration may save the project owner money.
Fast-track construction poses a challenge, however, when it comes to cost control. On a recent federal project, the contract price was to be “definitized” through negotiations once the design-build contractor had completed 95 percent of the construction documents. The government paid for construction work through a series of contract modifications authorizing “additional undefinitized funding.” ... Read more.
Featured in this Week’s Construction Claims Advisor:
- Contract Price Never ‘Definitized’ So Contractor Recovers Reasonable Cost
- Owner Did Not Have to Correct Defective Work before Recovering Cost
- Contractor Sanctioned for Violating AAA Arbitration Rules
By Steve Rizer
In considering updates to its C-700 General Conditions standard contract document, the Engineers Joint Contract Documents Committee (EJCDC) spent “a lot of time” consulting with experts to determine what insurance provisions should be included, EJCDC Construction and Procurement Subcommittee Chairperson James Brown told professionals attending a webinar that WPL Publishing recently sponsored. The document’s provisions addressing insurance represent one of the four categories containing the “most significant” changes made to C-700, a document that he characterized as “the lynchpin” within the organization’s Construction Series of documents.
Under the revised C-700, insurance companies must, at a minimum, have an A.M. Best Co. financial strength rating of “A” and be classified in a financial size category (FSC) of VII. This new provision is “not the most stringent [one that could have been included], but we believe it’s something sufficient to ensure that you’re going to get a good insurance company," Brown said during the webinar, entitled “EJCDC 2013 New Construction Documents: An Overview.” ... Read more.
By Steve Rizer
Has the U.S. Government Accountability Office (GAO) exposed the tip of a federal iceberg that is made up of flawed construction management practices and that is wreaking havoc via massive cost increases and schedule delays?
Earlier this month, an official from GAO, the investigative arm of Congress, told a House panel that her office has found significant shortcomings in the way the U.S. Department of Veterans Affairs (VA) is managing the construction of major medical facilities. ConstructionPro Week (CPW) then asked the same GAO representative whether she believes similar problems are common throughout the federal government. Click here to read her response.