By Bruce Jervis
A wrongfully terminated contractor is entitled to recover lost profit from the project owner. This is the profit the contractor reasonably anticipated had the contractor been allowed to perform the contract; it is a well-recognized element of damages for breach of contract. Lost overhead billings are generally not recoverable. The overhead would have been an indirect cost of performing the contract. The wrongfully terminated contractor did not perform that work or incur those costs.
It is important to maintain the distinction between profit and overhead mark-ups, but this is not always done. Contractors sometimes estimate and price work by applying a melded overhead and profit percentage to direct costs. Contractors sometimes apply mark-ups that are vaguely or inaccurately characterized. That was the case recently in California. ... Read more.
Featured in this Week’s Construction Claims Advisor:
- Contractor Could Not Recover Both Lost Profit and Lost Subcontractor Mark-Ups
- Disappointed Bidder Did Not Challenge Decision Promptly Enough
- Contractor Denied Final Payment Due to Lack of Appropriation
By Steve Rizer
When preparing for the Leadership in Energy and Environmental Design Green Associate (LEED GA) exam, what are the “final steps” that should be taken? In a recently concluded WPL Publishing series of four webinars, presenter Beth Shuck of Green Building Services Inc. (GBS) provided a list of such steps, urging audience members to, among other things, identify all of the wrong answers from their practice exams and figure out why they got those answers wrong. Click here to read some of the other advice she offered for taking the exam.
By Steve Rizer
The world’s building industry stands to reap substantial financial benefits through open standards for building information modeling (BIM), but the lone global standards body believed to be in a position to support “open BIM” is facing some very significant challenges.
“We are now at a true turning point, for the world has awakened to the promise of open BIM to deliver higher-quality, greater certainty, and cost reductions of around 20 percent,” the organization, buildingSMART International (bSI), stated in a paper it recently released. However, in that same paper, called “The Way Forward,” bSI acknowledged that the plan it has had in effect for transforming the global building industry is “unclear and without a timetable,” a dilemma that is hampering fundraising and membership levels. ... Read more.