By Bruce Jervis
Construction contracts usually allow the project owner to retain a portion of each progress payment, typically 10%, until completion of the work. The purpose is to protect the owner against incomplete or deficient work. This retainage, which can accumulate to a substantial sum, provides the owner with more than just protection. It also gives the owner significant leverage in a dispute with the contractor.
A public project owner in California delivered a written notice of default to its contractor. The contractor strongly contested the allegation of default. The owner ignored these protests and accessed the retained funds for the purpose of bringing in a replacement contractor ... Read more.
Most often, a disputed change order request or claim for extra costs on a construction project will require one or more negotiation sessions between the contractor and owner to arrive at the final cost and time impact. Negotiation offers the last and best opportunity to settle a dispute without resorting to arbitration or litigation.
Before going into a negotiation meeting, it is important to establish a strategy -- the framework from which the topics to be negotiated will be approached. Read more...
In a recent Client Alert, construction law firm Smith Currie & Hancock LLP reminds us of President Obama's Executive Order (EO) protecting employees of federal contractors and subcontractors with contracts in excess of $10,000 against discrimination on the basis of sexual orientation and gender identity. Under the regulations issued to implement the EO, employers that enter into or modify a federal contract or subcontract on or after April 8, 2015 will need to ensure that they are in compliance with the new requirements. Employers need to take the following steps: ... Read more.
Have you encountered or used building information modeling (BIM) on any of your projects? Have you considered its use but backed off? Are you interested in BIM but don't know where to begin?
BIM seems to be highly regarded by those who have made the transition. Owners cite facility management benefits in addition to lower costs. Contractors are finding benefits in improved coordination and scheduling with less claims and change orders. Architects and engineers find BIM allows projects to be completed faster while making it easier to make design changes. But BIM may not be suited for all projects, or all construction professionals. We here at ConstructionPro Network
are interested in your feedback, no matter where you are on the BIM scale. Please take a few minutes to complete our BIM Experience survey
. Respondents will also receive a 20% discount preference for the BIM Roadmap 2015 webinar series starting in March.