VOLUME 3   ISSUE 18   MAY 02, 2014


By Bruce Jervis


The public competitive bidding process is formal and structured. The underlying policy is to treat all bidders fairly and equally, as well as to protect taxpayer dollars through open competition. The mere appearance of favoritism or impropriety is offensive to the public procurement system. A formal process with a stipulated bid form and price breakdown avoids problems.


The private procurement of construction contracts is quite different. Without the expenditure of public funds, the policy concerns underlying the public bidding system do not exist. Private entities may contract as they choose. Sometimes, however, private project owners could benefit from the greater structure found in the public system. ... Read more.


Featured in this Week’s Construction Claims Advisor:

  • Contractor’s Fraudulent Concealment Imputed to Surety
  • Contract Was Fixed Price – Not Time and Materials
  • Deposition Transcript Released But Not Video


By Steve Rizer


If work on a construction project already has begun and a finalized contract is not in place, there are some important steps a contractor can take to protect itself in the event of a dispute, according to a paper submitted to the American Bar Association’s Forum on the Construction Industry Annual Meeting, which took place last month in New Orleans. “Notably, the contractor should keep precise documentation of all costs incurred and all scheduling, including delays.” Click here to see what other steps a trio of lawyers suggested both in the paper, entitled “Righting the Ship: Getting the Troubled Project Back on Course,” and during a presentation they delivered at the meeting.


By Scott Turner


The U.S. Court of Appeals for the Eight Circuit, in Netherlands Ins. Co. v. Main Street Ingredients, LLC (--- F.3d ----, 2014 WL 1012793, March 18, 2014) (Minn. law), held that a policyholder’s liability from its accidentally “bad” work or product being incorporated as a component into a larger, compound piece of property, thereby damaging or ruining the latter, was covered by the standard commercial general liability (CGL) policy. ... Read more.


By Steve Rizer


What is the main piece of advice that the U.S. Green Building Council (USGBC) has for someone pursuing accreditation through Version 4 of the Leadership in Energy and Environmental Design (LEED v4) rating system, credential exams which begin June 30? Here is how Cecilia Shutters, a spokesperson for the organization, answered this question during an interview with ConstructionPro Week (CPW): “Make sure you understand the new rating system, and also make sure you are comfortable with the Task Domains part of the test specs due to the project experience change. And remember, if you’re going for the LEED AP with specialty, you can always take the Green Associate test separately so you can space out your studying.” Click here to read some of the other advice she offered.





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