VOLUME 3   ISSUE 9   FEBRUARY 28, 2014

 

By Bruce Jervis

 

Some commentators have questioned the continuing viability of “pay-if-paid” and “pay-when-paid” clauses. These subcontract provisions make the prime contractor’s obligation to pay, or at least the timing of the payment, contingent upon the contractor’s receipt of payment for the sub’s work from the project owner. The enforceability of these clauses has been under relentless assault by both statute and judicial decision. A recent federal case provides another example.

 

An unpaid subcontractor on a federal project sued to recover against the Miller Act payment bond. The surety responded that it had no obligation to pay because its contractor had not yet been paid by the government and the subcontract contained a pay-when-paid clause. The court rejected this argument. ... Read more.

 

Featured in this Week’s Construction Claims Advisor:

  • ‘Pay-When-Paid’ Clause No Defense to Miller Act Claim
  • Recovery for Idled Equipment Narrowly Defined
  • Sub Bounced from Court Due to Misrepresentation

 

By Steve Rizer

 

Even if it tried, could the U.S. construction industry successfully implement the Obama administration’s plan for protecting workers from the dangers of crystalline silica? Anyone hoping to get a clear answer to this question by reading the breadth of comments that the U.S. Occupational Safety and Health Administration (OSHA) has collected on this topic in recent weeks may be sorely disappointed.

 

At issue is OSHA’s proposed Crystalline Silica Rulemaking for the construction industry, potentially requiring employers to measure the amount of silica that workers are exposed to if the compound may be at or above an action level of 25 micrograms of silica per cubic meter of air (µg/m3), averaged over an eight-hour day (ConstructionPro Week/CPW, Sept. 13, 2013, “How Much Should it Cost to Protect Construction Workers from Respirable Crystalline Silica?”). Employers also would be compelled to protect workers from respirable crystalline silica exposures above a permissible exposure limit (PEL) of 50 µg/m3, averaged over an eight-hour day. Click here to read what the Construction Industry Safety Coalition and AFL-CIO's Building and Construction Trades Department had to say about this matter.


 

By Scott Turner

 

A state supreme court has held that the self-insured retention (SIR) in a general contractor’s commercial general liability (CGL) policy was satisfied by the settlement contribution of another insurance company. The CGL insurer, General Fidelity Insurance Co., had argued that the SIR only could be satisfied by the policyholder's use of its own money. The Supreme Court disagreed in light of the wording of the particular SIR before it while recognizing that other SIR endorsements might be worded clearly enough to achieve that result. ... Read more.


 

By Steve Rizer

 

What will be the nationwide impact, if any, of the New York Green Bank, a bank that opened for business earlier this month with a partial mission of stimulating private financing of energy-efficiency projects? Well, there is at least one prediction that the bank -- believed to be the largest of its kind in America -- will have an influence well beyond the state’s borders. The prediction comes from Douglass Sims, senior policy analyst at the Natural Resource Defense Council’s Center for Market Innovation, who reported that his organization expects the bank to “set a national and international precedent for smart climate investment.” Will it? ... Read more.


 

By Steve Rizer

 

February 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 February 2014 addition:

 

How much does building information modeling (BIM) cost for a given construction project? There are, of course, several factors determining such a cost. Variables include, among other things, the purpose of the modeling effort, the phase of the project design, the level of detail of the model, and the number of updates to the model.

 

But despite so many factors, “I think that we’ve come to a rough rule of thumb” about the cost of BIM, Daniel Gonzales, corporate manager of virtual design and construction for Swinerton Inc., told professionals attending a WPL Publishing webinar entitled “Field BIM -- Using BIM to Improve Processes and Productivity,” a recording of which recently was added to the ConstructionPro Network (ConstructionProNet.com) Download Library free of charge for members. To see what this rule-of-thumb estimate is and what some of the reported financial benefits are, click here.


 

 

 

 

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