By Bruce Jervis
There are two ways to terminate a construction contract. A contract can be terminated for cause -- a termination for default. Or, a contract can be terminated without cause -- a termination for convenience. With a termination for default, the contractor is considered in breach of contract and held responsible for the cost of deficient or incomplete work. With a termination for convenience, the contractor recovers all reasonable costs incurred prior to the effective date of termination.
This leads to a question: Can one terminate a contract for convenience and take a set-off for deficient work? An Oregon court recently answered in the negative.... Read more.
Featured in this Week’s Construction Claims Advisor:
- No Responsibility for Corrective Work after Convenience Termination
- Supplier Not Allowed to Challenge Pre-Approval Exclusion
- Montana High Court Grapples with ‘Discovery’ Rule
By Steve Rizer
Just how much of an impact will the U.S. Supreme Court’s decision in Atlantic Marine Construction Company, Inc. (AMC) v. J-Crew Management, Inc. (No. 12-929) -- a case addressing the thorny issue of whether a construction dispute can be resolved in a local forum even if specified otherwise in a contract -- have on the nation’s construction industry?
In search of an answer, ConstructionPro Week (CPW) asked American Subcontractors Association Inc. (ASA) Chief Advocacy Officer E. Colette Nelson, “What statistics, if any, can you provide regarding the frequency with which such a clause is included in a contractor-subcontractor contract? About how many subcontractors will take their claims to remote jurisdictions in a given year, and, on average, about how much money can they lose as a result of such a clause being enforced? In a nutshell, what information can you share that quantifies the overall and/or typical impact of such clauses?”... Read more.
By Steve Rizer
Does commissioning make sense when it is not required for Leadership in Energy and Environmental Design (LEED) project certification? During the “Q&A” segment of a recent WPL Publishing webinar, an attendee whose team intends to pursue such a designation asked event speaker and Green Building Services Inc. Senior Commissioning Consultant Mitchell Chvilicek this question, noting that the building at issue has “many” other energy systems aside from those required for commissioning by LEED that potentially could be targeted for the process. Click here to read how Chvilicek responded to this inquiry during “Commissioning LEED Projects: Process and Keys to Success,” the target audience of which consisted of contractors, public and private owners, subcontractors, construction managers, owners’ representatives, architects, engineers, consultants, and other design professionals.