ConstructionAdvisorToday

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.

New Bill Expected to Lead to Energy Savings in Buildings

House and Senate lawmakers recently unveiled legislation addressing training for federal facilities personnel -- a measure that could save a significant amount of energy in buildings, according to bill supporters.

Reps. Russ Carnahan (D-Mo.) and Judy Biggert (R-Ill.) and Sens. Tom Carper (D-Del.) and Susan Collins (R-Maine) recently introduced the Federal Buildings Personnel Training bill (H.B. 5112 and S. 3250). The National Institute of Building Sciences (NIBS), along with other organizations in the building community, worked with the bill's authors to identify the need for training and develop the bill's content.

Trimble Introduces Point Creator Software

Trimble earlier this month introduced its Point Creator Software for contractors, engineers, detailers, and architects supporting the building construction industry as well as mechanical, electrical, and plumbing trades. The application, available in two versions -- Trimble Point Creator and Trimble Point Creator Pro -- provides a platform where computer-aided-design (CAD) users can create 2D and 3D points transferable to and from a Trimble LM80, Trimble MEP, Trimble TS Series Total Stations as well as other total stations. The application is compatible with popular CAD platforms such as AutoCad, Bricscad, and ZWcad.

Tension Between Arbitration and Mechanic's Lien Rights

There has always been a tension between the right to arbitrate disputes and the right to place a mechanic’s lien on the project owner’s property. Arbitration is a creature of contract. The parties to a construction contract have mutually agreed to resolve their disputes through binding arbitration. As with any contractual right, however, the right to arbitrate can be waived through conduct inconsistent with the assertion of that right.

Michigan Community-Based Organization Receives $250,000 to Build 30 Green Housing Units

The U.S. Department of Housing and Urban Development (HUD) recently announced that Washtenaw County, Mich., will receive a $250,000 grant to produce 30 new affordable green rental units in Ann Arbor.

The county will use Avalon Housing Inc., a community-based affordable housing developer, to create these new apartments, which will feature a sustainable site design, water-conserving fixtures, energy-efficient appliances/lighting, and environmentally friendly building materials.

Funding will come from HUD's HOME Investment Partnerships Program, which is believed to be the nation's largest block grant program to support the production of affordable housing.

Graphisoft Unveils New Version of Its Architecture Design Software

GraphiSoft earlier this month announced the introduction of ArchiCad 14, the latest version of its architecture design software.

ArchiCad 14 is designed to continue delivering productivity improvements for architects throughout the full cycle of the building information modeling (BIM) workflow with a specific focus on completing the integration of the architectural workflow with the engineering world. 

Flawed Quantity Estimates and Unbalanced Bidding

A reader recently raised an interesting question regarding a quantity estimating error and unbalanced bidding. The contractor in question had been quite certain a quantity estimate in a bid schedule was greatly understated. The contractor assigned an inflated unit price to this item, while bidding other items basically at cost. The contractor was awarded the contract, only to have the project owner delete the item with the understated quantity. The reader asked if this was permissible.