ConstructionAdvisorToday

The Pitfalls of ILL-Defined Construction Schedules

Most construction schedules are objective and well-defined. Maximum calendar days of performance are stipulated. A critical path of activities is frequently depicted. Surprisingly, however, not all construction contracts contain an objective schedule. One still sees contracts where the contractor is simply required to work “diligently” or “expeditiously” and instructed to perform “at the direction of” the project owner, construction manager or general contractor.

Parties are often comfortable with an ill-defined schedule. One reason is the belief that without an objectively stated schedule, there can be no liability for delay damages. This assumption is a fallacy.

New Congressional Bill Designed to Encourage 3-D Technology for Road, Highway Construction

Rep. Frank Guinta (R-N.H.) earlier this month introduced a bill (H.R. 2089) to promote the use of three-dimensional computer technologies in transportation projects that receive federal funding. The measure, which has five co-sponsors, is under consideration in the House Transportation and Infrastructure Committee’s Subcommittee on Highways and Transit.

C40, ICLEI to Establish Global Standard on Greenhouse-Gas Emissions from Cities

The C40 Cities Climate Leadership Group (C40) and ICLEI -- Local Governments for Sustainability, have agreed to establish a global standard for accounting and reporting community-scale greenhouse-gas (GHG) emissions that can be used across multiple platforms. This “common approach” is intended to help local governments accelerate their emission-reduction activities while meeting the needs of climate financing, national monitoring, and reporting requirements, according to ICLEI.

Project Owners Having It Both Ways with Liquidated Damages

Liquidated damage assessments frequently become contentious. Contractors bid and sign contracts without fully appreciating how fast these daily charges can add up. In one recent case, the contract called for a daily assessment for late completion of the overall project plus a daily charge of $42 per unit for each of the 30 housing units covered by the contract. The contractor incurred almost $100,000 in liquidated damages for unit-based delays.

New Program to Pay for Energy-Efficient Upgrades in Apartment Buildings

Federal housing officials and Fannie Mae have created a program to allow owners of existing affordable rental housing properties to refinance into new mortgages that include funding for energy- and water-saving upgrades as well as other needed property renovations.

Under the Green Finance Plus program, the U.S. Department of Housing and Urban Development’s Federal Housing Administration (FHA) and Fannie Mae will share the risk on loans to refinance existing rent-restricted projects while permitting owners to borrow additional funds to make energy-saving improvements to their properties.

BIM: The Buck Stops, Uh, Where Exactly?

By Michael Avramides

I think of myself as a fairly responsible professional, which means I want to know what responsibilities I can manage. So, instead of “passing the buck,” I gave my full attention to the latest 90-minute webinar from WPL Publishing Inc., “The Legal Risks of BIM (Building Information Modeling) -- Real or Imagined?”, presented by Michael Vardaro, a partner with Zetlin & De Chiara, a firm specializing in construction law.

Vardaro gave me two truly great insights. Along with what you would expect from most attorneys (and Vardaro is quite BIM-fluent to be sure), the “team” of owners, designers,
and builders is expected to rely on written agreements such as the American Institute of Architects’ (AIA) E202-2008 BIM Exhibit or the ConsensusDOCS 301 BIM Addendum, either of which may be a starting point.

Public Project Owner Delay on Claim Decisions

Public construction contracts at every level of government call for the initial submission of a claim to the public project owner itself for an administrative determination of the merits of the claim. This is a prerequisite to litigation of the claim in another forum. Sometimes the contract stipulates a period within which the owner must make a decision on the claim; sometimes not. Even when a deadline is stated, the owner can invoke exceptions. Basically, a standard of reasonableness prevails.

NIBS, AIA Pledge Support for Building Enclosure Councils

The National Institute of Building Sciences (NIBS) and American Institute of Architects (AIA) have signed a memorandum of agreement to support existing building enclosure councils (BECs) and develop new ones in cities across the United States.

BECs are networks of affiliated architects, engineers, contractors, manufacturers, and other professionals in major cities nationwide. The councils provide a forum for the construction industry to address building enclosures, the exterior systems of buildings that are considered to play a critical role in building performance and energy efficiency.

Independent 5D Initiative Enters New Phase in Developing BIM Solutions for European Contractors

The 5D Initiative, an independent think tank and task force, has entered into what it called a "process of more intensive cooperation" with five companies to develop new building information modeling (BIM) software solutions for European contractors. The 5D Initiative, operating within the Encord Virtual Construction Platform, is working with Autodesk, Bentley, Computers and Communication Technology International (CCT), RIB Software AG, and Tekla Corp.

The collaboration "is moving forward to incorporate pragmatic requirements for a 5Di solution, which is the amplification of BIM solutions for contractors to ensure higher process integration from very early design, engineering, fabrication, and construction to operation and maintenance," according to 5D Initiative.

Protecting Contractors Against Cost Volatility

The Changes clause of a construction contract gives the project owner the right to alter the scope of work, while making equitable adjustments to the contract price and schedule. The Changes clause also gives rise to the concept of a “constructive change;” an owner directive which, although not labeled as such, alters the contract requirements. But does the Changes clause require an owner to issue a change order when changed market conditions impose higher performance costs on a contractor? That question was recently presented to a Utah court.