VOLUME 2   ISSUE 37   SEPTEMBER 13, 2013


By Bruce Jervis


Public contracts are supposed to be awarded to the low responsible bidder. A key element of bidder responsibility is financial capacity. This is not the bidder’s faded financial history or future financial expectations. It is the bidder’s current financial condition at the time of contract award. This poses a problem.


Finances can change quickly. It is not always feasible for bidders to provide “real time” financial information. And, project owners need an opportunity to process the information they receive before making contract award. These dynamics were displayed in a recent Illinois case. ... Read more.


Featured in this Week’s Construction Claims Advisor:

  • Municipality Allowed to Limit Supplementation of Financial Information
  • Lien Release Bond Did Not Enhance Contractor’s Rights
  • Delay Claim Capped by Tort Damage Limit


By Steve Rizer


The federal government’s new proposal for reducing the incidence of silicosis among construction workers already has spawned estimates about what it would cost to comply with the plan -- if it is adopted in its current form -- and the number of lives it would save. Various construction associations have shared their projections -- and complaints -- about the approximate amount of money it would take to ensure compliance, and the U.S. Occupational Safety and Health Administration (OSHA) has unveiled its statistical projections of the plan’s potential human health dividend. What ought to be the proper balance? Click here to see the estimates and a summary of what the plan’s major provisions are.


By Scott Turner

A state Supreme Court recently joined the majority of U.S. courts in a snowballing trend by holding that defective completed construction work can be covered under commercial general liability (CGL) policies as an “occurrence” causing “property damage” and also avoiding the Your Work, Impaired Property, and Product  Recall exclusions, where the damage is to the work of the policyholder’s subcontractor. ... Read more.


By Steve Rizer


Expect to see “very efficient” new energy codes being adopted or implemented in several populous states next year. That is one of the predictions that Building Codes Assistance Project (BCAP) Senior Program Manager Maria Ellingson and Paul Karrer, BCAP’s project manager for national advocacy, made during an interview with ConstructionPro Week. Which specific states are expected to undertake such activity? For an answer to this question, their assessment of this year’s code activity, and other BCAP predictions, click here.





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