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By Bruce Jervis
It is a common feature in construction contracts: if the other party repeatedly fails to comply with the contract requirements, it will be grounds for default termination. The language is so common that few people bother to consider what it means. What is “repeated” noncompliance? It is obviously more than a single occurrence. But how much more?
A Georgia court recently grappled with this question. Two years into a project, a subcontractor was cited for a safety violation. Two more citations followed within four months. The prime contractor terminated the sub for default. The subcontractor sued for wrongful termination. A trial court granted summary judgment in favor of the contractor; these “repeated” safety violations clearly justified the default termination. The subcontractor appealed. ... Read more.
Featured in this Week’s Construction Claims Advisor:
- Court Addresses “Repeated” Noncompliance as Grounds for Default
- Bid Comparison with Cost Estimate Not Adjusted for Profit
- Terminated Contractor Recovers Cost of Capital
By Steve Rizer
“Guided choice” is being trumpeted as a new, cost-saving approach for resolving disputes in the design and construction industry, but how popular will it become? Well, use of the method could flourish in a major way if some steps recently taken to promote it prove effective.
One such step involves ConsensusDocs, a coalition of 40 design and construction industry associations, which earlier this month announced that it is including information about how to implement guided choice in the official ConsensusDocs Guidebook. In addition, the group recently sought to educate users about the process at the annual Construction SuperConference ConsensusDocs PreConference Workshop in San Francisco. Furthermore, the American Arbitration Association (AAA) will honor requests from the parties to use the guided choice process in AAA-administered mediation through arbitration. But will the industry embrace the approach? Click here to read how Carrie Ciliberto, Associated General Contractors of America’s senior director and counsel for contracts and construction law, answered this question during an interview with ConstructionPro Week.
By Steve Rizer
What kind of a payback period should be expected for meeting the standards of the Leadership in Energy and Environmental Design for Existing Buildings (LEED-EB) rating system? During “Maximizing Value in Retro-Commissioned Buildings,” a 90-minute webinar that WPL Publishing held earlier this month, Triple Green Building Group Principal Kelly Gearhart provided attendees some interesting statistics on this topic, reporting not only the amount of time it typically takes to garner a return on investment (ROI) for meeting LEED-EB criteria but also the amount of money that can be saved per year. To see some of the numbers she shared during the “Enhance Value of Existing Building Stock” segment of her presentation, click here.