VOLUME 2   ISSUE 34   AUGUST 23, 2013


By Bruce Jervis


The design and construction process primarily involves two-party agreements, a chain of contractual relationships. Sometimes, however, arrangements are created which involve three or more parties. Examples include claim sponsorship and joint check agreements. When these agreements fail to allocate financial proceeds, disputes follow. Two recent cases provide examples.


The first case involved a prime contractor’s sponsorship of a subcontractor delay claim against the project owner. The contractor eventually settled the dispute with the owner on behalf of itself and several subcontractors. But the settlement agreement was not itemized and did not allocate the proceeds among the multiple claimants. Litigation ensued. ... Read more.


Featured in this Week’s Construction Claims Advisor:

  • Sub Demands Portion of Prime’s Claim Settlement with Owner
  • Joint Check Agreement Enforceable but Full Amount Not Imputed
  • Shop Drawing Prep Covered by Miller Act Payment Bonds


By Steve Rizer


For construction contractors doing business with the federal government, how much of a financial hit should they expect to take in order to comply with new employment rules for federal contracting that the Obama administration is expected to issue soon? With industry and government estimates varying substantially, a true answer is difficult to find. Complicating matters are conflicting projections about the number of establishments that could be affected by the forthcoming requirements, which address affirmative action for certain veterans and people with disabilities. For a rundown of what the impending rules are expected to require, what the costs of compliance may total, and where the rules could take effect, click here.


By Steve Rizer


Which projects has the U.S. Department of Energy (DOE) most recently decided to support to make buildings more energy efficient through innovative technologies and techniques? Three of the 18 projects involve open-source energy-efficiency software, nine focus on heating, cooling, and insulation technologies, and six involve conserving energy at small commercial buildings. For summaries of what these innovations are, click here.





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