VOLUME 2   ISSUE 52   DECEMBER 27, 2013


The staff at WPL Publishing Co. wishes you a happy and healthy new year.


By Bruce Jervis


Once again, there has been litigation involving the sufficiency of a statutory notice. This did not involve electronic communication. It was a rather prosaic and old-fashioned question: To which address should a notice of claim, transmitted by certified mail, be addressed? The Minnesota Supreme Court said the state payment bond statute created a trap for the unwary -- details of which can defeat meritorious claims.


The statute in question calls for an unpaid subcontractor on a public works project to submit a notice of payment bond claim to the bonded prime contractor and the surety at the addresses listed on the bond. The contractor listed an address on the bond that differed from the address it used on the subcontract, in its correspondence and on its website. Additionally, the contractor had actual timely notice of the claim because the surety had consulted the contractor in the matter. Nonetheless, the unpaid subcontractor was doomed by the misaddressed notice of claim. ... Read more.


Featured in this Week’s Construction Claims Advisor:

  • Payment Bond Statute Called Trap for Unwary
  • Court Applies 'Casual Employment' Exception to Worker’s Comp Statute
  • Low Bidder Allowed to Submit Affidavit after Bid Opening


By Steve Rizer


ConstructionPro Week has compiled a list of 21 books and other documents addressing construction law that various entities, such as the American Bar Association (ABA), began making available sometime in 2013. The publications focus on a wide variety of topics, such as the legal aspects of the architecture, engineering and construction process; contractor license law; and contract bond surety subrogation rights. For additional information about these publications, click here.


By Steve Rizer


Energy-efficiency advocates were dealt a blow earlier this month when a key congressional senator declined to include provisions promoting building energy efficiency in the package of energy tax reform proposals that he unveiled, but the group has not given up hope. 


The National Electrical Manufacturers Association (NEMA) lamented that Sen. Max Baucus (D-Mont.), the Senate Finance Committee’s chairperson, opted not to include in his plan a mechanism for incentivizing energy efficiency in both new and existing buildings. The group of 400-plus electrical equipment and medical imaging manufacturers considers measures encouraging energy efficiency to be “vital components of any plan to cut emissions and increase energy security” and will maintain its pursuit on this front. To read the specific measures that NEMA wants Congress to adopt and what a representative from the organization told ConstructionPro Week (CPW) his group intends to do next in support of those measures, click here.


By Steve Rizer


December 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 December 2013 addition:


The amount of rework within the construction industry that goes unreported is staggering. If a 2011 estimate from the Construction Industry Institute is to be believed, only 50-75 percent of the actual amount of rework performed gets reported. But why is rework being under-reported? During a webinar called “The Impact of Rework on Construction Projects and Some Practical Remedies,” – a recording of which recently was added to the ConstructionPro Network (ConstructionProNet.com) Download Library free of charge for members -- Navigant Construction Forum Executive Director James Zack offered an interesting theory about why this happens. 


“I think a contractor’s project manager would probably be putting his own career seriously at risk if he actually told the boss, ‘Yeah, I know we had $500,000 worth of rework here, but it really was $1.25 million,’" Zack told the webinar audience during the program’s question-and-answer period. “That’s just not going to go over well with senior executives, so I suspect that the reason that rework is under-reported is a job-protection sort of thing on the part of the field project managers.” ... Read more.





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