By Bruce Jervis
Contractors frequently speak of, and even account for, their overhead costs in a loose, generic manner. Job site or field overhead is very distinct from home office or general and administrative overhead. Yet when pricing work, contractors may apply a single percentage markup to direct costs.
There is a flaw in this approach. The methods for proving entitlement to field overhead differ from the methods for proving entitlement to home office overhead. The calculation of damages differs as well. When contractors treat overhead as a unitary item, problems arise. This was illustrated in a recent case from Ohio. ... Read more.
Featured in this Week’s Construction Claims Advisor:
- Extended Field Overhead Based on Contract Performance Period
- Owner Not Responsible to Sub for Change Order Costs
- Bid Nonresponsive Due to Disadvantaged Business Noncompliance
By Scott Turner
The Supreme Court of South Dakota recently issued its decision in Swenson v. Auto-Owners Ins. Co., 831 N.W.2d 402 (S.D. 2013), holding that the Care, Custody & Control, Performing Operations Exclusion, and Incorrectly Performed Work Exclusion eliminate commercial general liability (CGL) policy coverage for property damage to an insured contractor’s own work and stored building materials during its ongoing operations. ... Read more.
By Steve Rizer
For construction professionals who may join a construction project in which Living Building Challenge (LBC) certification is being pursued, what advice should they follow? What should architects, engineers, contractors, owners, and others know before committing to or working on such a project? For answers to these questions, ConstructionPro Week interviewed a spokesperson for the International Living Future Institute (ILFI), the organization that created the international sustainable building certification program seven years ago. Click here to read his response.
By Steve Rizer
September 2013 Download Library Addition
As new webinar recordings are made available to the ConstructionPro Network free member Download Library on a monthly basis, ConstructionPro Week will provide a brief summary of each event for the benefit of its readership. Here is the summary for the September 2013 addition:
One of the new documents that the Engineers Joint Contract Documents Committee (EJCDC) has added is “C-523,” which addresses subcontracts. This is one of three new documents that EJCDC Construction and Procurement Subcommittee Chairperson James Brown discussed during a recent WPL Publishing webinar for which a recording recently was added to the ConstructionPro Network (ConstructionProNet.com) Download Library -- free of charge for members.
“A lot of the contractors at the table were telling us that while C-700, the General Conditions [document], made it clear that any subcontract that they were to use would bind the subs to the terms of the prime contract, they complained that we never really had a coordinated document that did that, and now we do,” Brown told the webinar audience. ... Read more.