VOLUME 3   ISSUE 5   JANUARY 31, 2014


By Bruce Jervis


The “Permits and Responsibilities” clause is found in every federal construction contract. It requires contractors, at no additional expense to the government, to comply with any federal, state, or municipal law, code, or regulation applicable to the performance of the work. Reasonable enough; code compliance is an inherent aspect of performing construction work. Few contractors realize, however, the scope of the risk that is allocated under this clause.


On a federal prison project in New Hampshire, state environmental regulatory authorities imposed limitations and restrictions on cut-and-fill activities, which greatly increased the contractor’s estimated costs and performance time. Perhaps some of these limitations should have been anticipated by the contractor, but many of the restrictions appear arbitrary and unreasonable. ... Read more.


Featured in this Week’s Construction Claims Advisor:

  • Federal Contract Clause Left Contractor at Mercy of State Regulators
  • Contractor Had No Obligation to Release Sub’s Retainage
  • Failure to Provide OSHA Safety Ratings Disqualifies Offeror


By Steve Rizer


At such a crucial stage in America’s effort to address its “infrastructure deficit,” with billions of dollars for the construction industry hanging in the balance, every decision on this front becomes paramount. Last week, the Associated General Contractors of America (AGC) suggested that one of those important decisions would be how President Obama dealt with the issue during his State of the Union address.


“The State of the Union provides you the perfect opportunity to outline to congressional Republicans and Democrats your plan to work with them to increase public and private investments in our roads, bridges, ports, airports, waterways, and water systems,” AGC Chief Executive Officer Stephen Sandherr wrote in a Jan. 23 letter to Obama, urging him, among other things, to facilitate “workable revenue options to avoid the upcoming insolvency of the Highway Trust Fund (HTF).” Click here to see how the president addressed the infrastructure issue during last Tuesday’s speech and to read more about what AGC wants federal decision-makers to do in this particular area of construction law


By Scott Turner


A state supreme court has ruled that the standard commercial general liability (CGL) policy Contractual Liability Exclusion does not apply to bar ordinary breach-of-contract claims over a policyholder’s defective construction work. ... Read more.


By Steve Rizer


There is a certain best practice concerning weekly meetings in construction projects that Trauner Consulting Services Inc. Director Bill Milliken has “often” seen ignored. It is a best practice that, during a WPL Publishing webinar last week, he characterized as “important” to implement after such meetings take place -- meetings ideally attended by “all of the project stakeholders,” including the owner, contractor, design team, “and maybe even the subcontractors.” To see what this best practice is and to read some of the other advice he offered during the “Standard Project Documentation” portion of his 90-minute presentation, click here.


By Steve Rizer


January 2014 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 January 2014 addition:


In striving toward successful “BIM (building information modeling) implementation,” when aligning the technology with business goals, “your first requirement is to define what your expertise is so that you know who you can work with.” This is one of the pieces of advice that buildingSMART alliance Executive Director Deke Smith offered to professionals attending WPL Publishing’s “Implementing BIM -- A Strategic Approach” webinar, a recording of which recently was added to the ConstructionPro Network (ConstructionProNet.com) Download Library free of charge for members. ... Read more.





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