VOLUME 2   ISSUE 44   NOVEMBER 01, 2013


By Bruce Jervis


Many states provide payment protection for subcontractors and suppliers on private projects not covered by public works payment bonds. This payment security mechanism is commonly called a “stop notice.” The unpaid sub formally notifies the project owner it is owed money by the prime contractor. The owner is then statutorily obligated to withhold that amount from the contractor pending formal resolution of the matter.


The Mississippi Stop Notice statute has run afoul of the U.S. Constitution. A federal appeals court noted the law’s “profound lack of procedural safeguards.” A contractor’s payment under the prime contract could be withheld for an extended period of time based essentially on the unilateral say-so of a disgruntled subcontractor. This deprived the contractor of a significant property right without due process of law. ... Read more.


Featured in this Week’s Construction Claims Advisor:

  • Mississippi 'Stop Notice' Statute Ruled Unconstitutional
  • Construction Manager Not Liable to Injured Worker
  • Contractor Failed to Seek Approval of Equivalent Material


By Steve Rizer


For many small buildings, traditional energy audits are not cost-effective, but an energy audit tool that is expected to hit the multi-billion-dollar energy-retrofit industry next year may go a long way toward eliminating this energy-savings stumbling block … if the tool lives up to its hype.


“Traditional audits can be cost prohibitive for small buildings, and with margins thin, ESCOs [energy service companies] have little incentive today to absorb those costs due to lower total savings potential; Simuwatt Energy Auditor offers to change this equation,” according to the National Renewable Energy Laboratory (NREL), which created the tool in partnership with Denver-based software developer Concept 3D. Simuwatt will allow ESCO employees to perform audits using mobile tablets, replacing the “clipboard-and-pencil” approach used in most building audits with a package incorporating comprehensive computer modeling. ... Read more.


By Steve Rizer


“If an owner never addressed schedule updates during a construction project, what would be the best method to determine the impact of delays at the end of the project?” This was one of almost a dozen questions that various professionals from within the construction community asked during the “Q&A” segment of “Forensic Schedule Analysis: Examples and Case Studies,” a 90-minute webinar that WPL Publishing held last month. To see how webinar speaker and Trauner Consulting Services Director Mark Nagata answered this inquiry, click here.





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