ConstructionAdvisorToday

Itemizing Anticipated Costs In a Notice of Claim

Bruce Jervis, Editor
Construction Claims Advisor

Construction contracts frequently include a “notice of claim” provision. The contractor is required to provide the project owner or owner’s representative with a written notice of claim within a stipulated number of days of the occurrence giving rise to the claim. If the contractor was not aware of the occurrence, notice must be provided within a stated number of days of the contractor’s discovery of the event. Failure to give timely written notice operates as a complete waiver and release of the contractor’s claim rights.

These contract clauses are not always limited to notice of the claim event itself. They may require an itemized accounting of the increased costs the contractor expects to incur as a result of the occurrence – a statement of damages. That was the case in a recent highway construction contract in Hawaii. The state learned immediately of the discovery of an existing subsurface utility not indicated in the state’s drawings. The state issued directives and paid the direct cost of dealing with the problem. But when the contractor filed a claim for the impact costs, the delay and disruption to the project as a whole, the notice of claim requirement raised its head.

Bill to Spur Energy-Efficient Building Retrofits Gains House Approval

The House recently approved a bill that would allow federal loan guarantees to be applied to energy efficiency projects funded through Property Assessed Clean Energy (PACE) bonds.

The PACE bonds provision, advocated by Rep. Steve Israel (D-NY), is part of the House-passed $75-billion Jobs for Main Street Act (H.R. 2847). PACE bonds allow property owners to finance energy efficiency retrofits through a loan voluntarily attached to the borrower's property tax bill. These long-term loans could be transferred along with the sale of the property in order to accelerate investment in energy efficiency retrofits. Fifteen states have enacted bills that allow this type of municipal financing, while several more are considering such bills or running pilot projects.

AGC Develops MEP Spatial Coordination Requirements for BIM

The Associated General Contractors of America (AGC) has announced the development of a document entitled "MEP Spatial Coordination Requirements for Building Information Modeling."

"The recent widespread adoption of building information modeling (BIM) and 3D modeling in the construction industry has necessitated the development of a well-defined, organized, consistent, and repeatable framework for spatial coordination of mechanical, electrical, plumbing, and fire-protection systems," according to the report, created by the Specialty Contractor's Subforum of the AGC BIMForum.

Does Bid-Listing of Subcontractors Constrain Competition In Public Works Contracting?

In many jurisdictions across the country, bidders on public works contracts are required to list the key subcontractors they intend to use if awarded the contract. Many times, the list of trade contractors is provided by the public project owner, based on successful sub-bidders on those trade contracts. Sometimes the bidder simply commits in advance to subcontractors it selected. Unauthorized substitution of listed subcontractors typically subjects the bidder to a financial penalty.

Bentley to Establish Shared Services, Sales, Marketing Centre

Bentley Systems Inc., which provides architects, engineers, constructors, and owner-operators with comprehensive software solutions for sustaining infrastructure, has committed to establish an international Shared Services, Sales and Marketing Centre in Dublin, Ireland. The investment was facilitated by the Irish government through IDA Ireland.

Clark County Regional Justice and Detention Centers at Heart of Another Legal Battle

The key players in the construction of the Clark County (Nev.) Regional Justice Center and the adjacent Detention Center in Las Vegas are back in court. This time, the county is suing its engineering contractor, Pasadena, Calif.-based Jacobs Engineering Group Inc. The projects both ran tens of millions of dollars over budget and finished nearly four years behind schedule. In its latest court filing, on Jan. 20, the county is seeking undisclosed damages for Jacobs’ “gross mismanagement” of the projects as well as for its role that led to major delays and cost overruns.

California Adopts Statewide Green Building Standards Code

California's Building Standards Commission (CBSC) has adopted a mandatory Green Building Standards Code (CALGREEN), which is designed to improve energy efficiency and environmental responsibility for new buildings. CALGREEN, which is believed to be the first such code of its kind in the United States, is scheduled to take effect in January 2011.

The Importance of "Putting It In Writing" In Design and Construction Contracts

While on vacation, I will not provide my typical commentary today but will resume my posting on Construction Advisor Today next week.  Meanwhile, I would like to share a report highlighting recent WPL Publishing webinars, presented by experts in the field of design and construction contracts, scheduling and weather planning.

Las Vegas' New CityCenter Considered One of World's Largest Green Developments

The new CityCenter, billed as an "unprecedented urban metropolis" in Las Vegas, is considered one of the world's largest sustainable developments.

The 18-million-square-foot urban resort is slated to receive a combination of gold and silver LEED ratings from the U.S. Green Building Council. Among the structures included in the development are hotels, residences, restaurants, and retail and public spaces.

Tekla Equips MTSU Program with Suite of 3D BIM Software

Tekla Inc., through its Education Program, has equipped Middle Tennessee State University's (MTSU) Concrete Industry Management (CIM) Program with Tekla's complete suite of 3D Building Information Modeling (BIM) software, Tekla Structures. The software will be available to every student and professor and is expected to become an integral part of course work.