ConstructionAdvisorToday

Much Maligned "Total Cost Method" Gets New Life

The “total cost method” of quantifying construction claims has always had a bad reputation. The technique compares the cost of the work as bid with the cost of the work as performed and attributes all the cost increase to the acts or omissions of the project owner. It has been considered a bad practice because it is imprecise and it lacks proof of causation by the owner. Now, however, the technique has been resurrected as the “modified total cost method.” And it is enjoying success.

New Releases Announced for Two Reed Products

Reed Construction Data (RCD) earlier this month announced new releases for two of its building information modeling (BIM) products, SmartBIM Library 4.0 and SmartBIM QTO 2.0, which now include support for Revit 2011 from Autodesk.

The enhancements to SmartBIM Library make object content management easier by improving performance for publishing and filtering large catalogs of BIM family content, RCD stated. "These enhancements and the other features of SmartBIM Library can drastically reduce time spent managing and organizing Revit families."

Conference of Mayors Embraces Green Building Policy Agenda

The U.S. Conference of Mayors (USCM) and its membership have embraced a green building policy agenda containing five resolutions that are expected to benefit the built environment. The move drew the praise of the U.S. Green Building Council (USGBC), whose mission is to transform the design, construction, and operations of buildings and communities.

Unilateral Resolution of Unpriced Changes

A fIt is well established that when a project owner issues a directive the contractor must comply, even if the contractor considers the directive an expansion or change in the scope of work. The contractor cannot stop work and insist on negotiating a price adjustment. The contractor must rely on the contractual dispute resolution procedures to seek eventual compensation. Some contract documents, however, take advantage of the contractor’s lack of leverage and skew the process in the owner’s favor.

GreenGuard Environmental Institute Opens Asia-Pacific Headquarters in China

GreenGuard Environmental Institute (GEI) has debuted overseas operations in Beijing, China, serving the Asia-Pacific market with opportunities to certify products for their indoor environmental qualities. GEI considers this a "major move toward global expansion."

Construction Management Group Reports 13 Percent Jump in Membership

Asserting that it is "on solid ground," the Construction Management Association of America (CMAA) earlier this month reported that its growth rate held steady last year at 13 percent.

"Now more than ever, construction and program managers are seeking to leverage the knowledge and professionalism of their teams," CMAA President and Chief Executive Officer Bruce D'Agostino said. "These teams benefit greatly from our career development offerings, in particular the Certified Construction Manager credential."

A Fixed-Price Construction Contract is Usually Just That

Bruce Jervis, Editor
Construction Claims Advisor

A fixed-price construction contract is usually just that. Sometimes, however, prices for materials or commodities such as asphalt or fuel are stipulated in the bid documents, with payment to the contractor adjusted to reflect the actual costs indicated in periodic published indexes.

Autodesk Makes Available Eight Software Suites for Students

Autodesk Inc. recently unveiled eight industry-oriented software suites to help students learn core design and engineering skills. The suites contain the full range of Autodesk 2D and 3D design software tools used by professionals worldwide. The bundled packages encourage a multidisciplinary educational approach, helping faculty teach key concepts that help prepare students for careers in architecture, engineering, and the digital arts. These suites, offered globally, are available in English and more than 10 other languages.

World Market for Green Building Materials Expected to Reach $406 Billion by 2015

The world's market for green building materials is expected to reach $406 billion by 2015, according to a new report entitled "Green Building Materials: A Global Strategic Business Report."

In announcing the report's release, Global Industry Analysts Inc. (GIA) asserted that growth primarily will be driven by increased awareness of environmental concerns the world over, high energy costs, increasing awareness that green buildings enhance well-being and worker productivity, and decreasing costs of green building materials.

Shared Risk of Owner Non-payment

Several months ago we addressed the risk of owner nonpayment. Should the risk be borne solely by the prime contractor who, of course, elected to contract with the project owner? Or should subcontractors share this risk?

The question arises in the context of “pay-if-paid” clauses in subcontracts. The subcontractor gets paid for its work only if the prime contractor receives payment from the project owner for the sub’s work. These clauses are controversial. And their enforceability is increasingly subject to challenge.