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VOLUME 5   ISSUE 5   FEBRUARY 05, 2016

 

By Bruce Jervis

 

Construction contracts commonly require contractor submittals, which must be approved by the project owner before work can commence. The subjects range from planned schedule to environmental protection, equipment specifications to safety plan, quality control to traffic control. The contract treats owner approval as a precondition to performance. In practice, however, it frequently is not. Read more.

 

Featured …


 

The results of ConstructionPro Network's second annual Drones in Construction survey report have been released.  The first survey, conducted in the summer of 2014, was a short four-part questionnaire to obtain the industry’s pulse as drones were just beginning to be used on construction sites.  Surprisingly, 73% of respondents said they were aware of drone use on construction sites, while 29% reported having hands-on experience. 

 

The leading uses reported were aerial photography, inspection, safety monitoring and surveying.  The number of respondents aware of drones in the 2015 survey jumped to 88%.  Leading use cases were similar, but the 2015 survey was expanded to 10 questions to gather more detail on how they were used, what drones were flown, what cameras were used and to learn best practices based on user experiences.  Read more...



From Previous 3 Issues:
Volume: 5, Issue: 4 - 01/29/2016

 

By Bruce Jervis

 

The Eichleay formula, used for calculating and recovering home office overhead in a delay situation, has long been controversial. Critics say these general and administrative expenses are fixed; a delay or suspension of work in the field does not increase them. However, delay in performance results in delay in payment. If periodic progress payments are extended over a longer period of time, the contract does not cover, or absorb, fixed costs at the rate anticipated when the contract was bid. That is why these damages are interchangeably referred to as extended, unabsorbed or under absorbed home office overhead. Read more.

 

Featured …


 

This week's blog highlights from across the industry look at:

 

  • Design-Build efficacy
  • Futuristic building technologies around the corner
  • Improving construction safety against top four OSHA accident categories
  • 3D models for construction projects
  • Commercial construction contractors - 3 tips to building a successful business
  • Considerations for procurement and fabrication of materials from China

 

Read more


Volume: 5, Issue: 3 - 01/22/2016

 

By Bruce Jervis

 

The retention of a percentage of each progress payment is customary in the construction industry. The purpose is to protect a project owner or prime contractor against incomplete or noncompliant work by a contractor or subcontractor. The retained funds are released upon successful completion of the project to the parties that performed the work. Read more.

 

Featured …


 

This week's blog highlights from across the industry look at:

 

  • Construction equipment — telematics and GPS
  • Construction equipment — buy used or new?
  • What's the Internet of Things have to do with construction?
  • Lean construction on the Ohio River
  • Remote-control vehicles making their way to construction sites

 

Read more


Volume: 5, Issue: 2 - 01/15/2016

 

By Bruce Jervis

 

The essence of an arbitration agreement is the mutual consent of two parties to submit any claim or dispute arising under their contract to a neutral arbitrator for a binding, final decision. It is a matter of contractual consent between the two parties, so the courts afford great deference to the arbitration process and its resulting awards. Read more.

 

Featured …

           


 

Although not a construction contract, this recent ruling by the Comptroller General on a bid protest upheld the Army's conclusion that a proposal for providing logistic support services was noncompliant for failing to meet two RFP requirements. One of the requirements was to meet minimum required employment hours for the supply and services functional area. In order to arrive at the total hours, a spreadsheet needed to be submitted that showed the individual category subtotals plus the total number of hours. However, the numbers didn't add up. Read More.


 

In pro sports, the team that makes the least mistakes wins the most games. Similarly, construction projects that are well-planned with minimal disruptions, delays and rework are the most profitable. Construction contract management is a team effort, with the necessity of all team members understanding the issues of project management, contract administration and construction law. Both new personnel and old hands alike need to learn about new issues as well as be reminded about basic contract principles in order to quickly make correct decisions during their very busy day-to-day management activities. Owners, designers and construction managers also need to stay informed to move the project forward as well as protect their respective interests. Read More.



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