By Bruce Jervis
Construction contracts frequently contain a “notice of claim” requirement. If a contractor believes an occurrence entitles the contractor to additional compensation under the contract, the contractor must give the project owner written notice within a stipulated number of days of the date of the occurrence. Failure to do so bars any recovery of additional compensation.
One might assume a prudent contractor would be quick to give formal notice of claim, even in borderline situations, in order to preserve the contractor’s rights. The prevailing culture, however, is to the contrary. Claim notices seem unduly adversarial, even unsavory. Project owners prefer to resolve these matters informally without the administrative strictures of formal claim procedures. Contractors are often discouraged from submitting written claim notices. ... Read more.
Featured in this Week’s Construction Claims Advisor:
- Owner Did Not Waive Claim Notice Requirement by Encouraging Informal Resolution
- Bonding Regulations Protected Government, Not Contractor
- Appeal of Suspension Moot Despite Damage to Business Reputation
By Steve Rizer
There is much concern about the amount of damage the Obama administration’s new “Waters of the United States” proposal could do to the U.S. construction industry. If the plan, which the U.S. Environmental Protection Agency (EPA) and U.S. Army Corps of Engineers (USACE) proposed last Monday, becomes a final rule, “we would imagine that projects will be delayed significantly,” Jimmy Christianson, Associated General Contractors of America’s (AGC) director of government affairs, told ConstructionPro Week (CPW) upon the proposal’s release. ... Read more.
By Steve Rizer
What is the most important factor for a winning request for quotation (RFQ)/request for proposal (RFP) submission in construction? Is it the expertise of the team or staff? Does it have something to do with the price or fee being competitive? Or, does the primary component of a successful RFQ/RFP primarily hinge upon relationships? Actually, it is another factor, according to survey results that the Construction Marketing Association (CMA) released earlier this month. To see which factor survey respondents consider most important and to view some of the other results, click here.
By Steve Rizer
April 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 April 2014 addition:
Many owners do not understand subcontractor’s default insurance … or the benefits that they can gain from it. This is one of the messages that Ira Schulman, a partner in the Construction Practice Group of Pepper Hamilton LLP, conveyed to professionals attending WPL Publishing’s “An Introduction to Subcontractor’s Default Insurance” (SDI) webinar, a recording of which recently was added to the ConstructionPro Network (ConstructionProNet.com) Download Library free of charge for members. “Many owners don’t understand the protection they get, but when they learn that it gives the contractor control to more effectively deal with poor subcontractor performance and defaults and [that] this will help ensure the project will be completed on time, within budget, it becomes a little easier sell to the owner.” ... Read more.