A bid is unbalanced when it fails to rationally allocate cost, overhead and profit among the various work items. As a general rule, a public project owner may accept a “mathematically unbalanced” bid unless it creates unreasonable risk for the owner. In that case, the bid is considered “materially unbalanced.” It is non-responsive and ineligible for contract award. Read more.
One attraction of binding arbitration as a mechanism for resolving disputes is the relative informality in comparison to judicial litigation. Informality can have disadvantages, however. One is the limited explanation of the basis for the arbitrators’ decision. Read more.
This week's blog highlights focuses on the Internet of Things (IoT). From a personal experience this week, it's fairly easy to envision how the IoT can benefit the industry, in ways both obvious and not. Let's recount a story to illustrate a simple scenario where an IoT sensor can benefit a developer, a contractor and the end-user customer. Read more...
SInce being placed back into operation earlier this year after a two-year repair project, the tunnel boring machine for Seattle's Alaskan Way viaduct project has been making good progress. Recently it paused for a routine inspection and maintenance checkup, including replacing cutter heads. Read more.
“No-damage-for-delay” clauses disclaim any project owner liability for construction delays, regardless of cause, experienced by the contractor. The one-sided nature of these exculpatory clauses has caused legislatures and courts to carve out exceptions and limitations to their enforceability. Unfortunately for contractors, there is no general exception for owner mismanagement of the project. Read more.
Fiori, an Italian equipment manufacturer, has a novel approach to batching and delivering concrete on a construction site. Effectively, it is a mobile batch plant capable of measuring, weighing, mixing and delivering concrete. Read more.
“Pay-if-paid” clauses in subcontracts are controversial. Many consider it unfair for a prime contractor to shift the risk of project owner nonpayment to a subcontractor that has no business relationship with the owner. In some states, pay-if-paid clauses have been rendered unenforceable by statute or judicial ruling. In most states, however, they are enforceable if clearly drafted. Read More.