ConstructionAdvisorToday

Are "Pay-if-Paid" Clauses Fair?

“Pay-if-paid” clauses in subcontracts purport to shift the risk of project owner nonpayment from the prime contractor to the subcontractor. If drafted carefully, with express “condition precedent” language, they are enforceable in most (but not all) jurisdictions. The clauses, however, are understandably resented by trade contractors. The prime or general contractor elected to do business with the project owner and had the opportunity to ascertain the financial capability of that owner? Why should a subcontractor, which contracted only with the prime, be asked to assume the risk of owner insolvency?

California Unveils Solar Advantage Value Estimator

California energy officials have launched an online tool to help homeowners and other players in the state’s housing industry gauge the value of residential solar photovoltaic (PV) systems. It is a unique tool that could be adapted for use in other areas across the United States and abroad, a California Energy Commission (CEC) spokesperson told Green Building Insider (GBI).

BIM Waste Considered Prevalent in the Construction Industry

The construction industry has not been using building information modeling (BIM) to its fullest potential, BIM experts told attendees of last week’s Symposium on Technology in Design and Construction, an event for which WPL Publishing served as a sponsor.

Who Bears the Risk of Late Delivery of Sole-Source Products?

If a project owner specifies the use of a proprietary product, a particular brand and model, the contractor may find itself dealing with a sole-source supplier. If that supplier proves unable or unwilling to deliver the product in a timely manner, who is responsible for the resulting delay? The project owner who mandated the product or the contractor who has contracted with the supplier?

Nearly Half of All States Have Adopted a Residential Energy Code at Least as Stringent as 2009 IECC

Twenty-one states have adopted a residential energy code that is at least as stringent as the 2009 version of the International Energy Conservation Code (IECC), according to Green Building Insider’s analysis of energy-code information that DOE recently released. The status of each state’s energy-code policy for both the residential and commercial sectors can be accessed through the following link: http://www.energycodes.gov/states/state_status_full.php.

Progress Reported on the Use of ASTM’s E2691 Construction Productivity Standard

How useful has ASTM International’s standard on construction productivity (ASTM E2691) been since it was adopted early last year? In a recent email interview, MCA Inc. President Perry Daneshgari, a member of the subcommittee that developed ASTM E2691, addressed this question and others relating to the topic.

The Cumulative Impact of Multiple Change Orders

When a project owner and a contractor agree to the terms of a contract modification, the document typically contains “accord and satisfaction” and “waiver and release” language. The contractor acknowledges that this is a complete settlement of the entire matter and waives the right to any subsequent claim arising out of the change. But what happens if the project owner keeps issuing more and more change orders?

Jurisdictions Requiring Energy Transparency Should Take Proactive Steps: Report

Local and state governments adopting policies to require large commercial building owners to both measure and disclose their properties’ energy use should take some proactive steps to maximize compliance, according to a report that the Institute for Market Transformation (IMT) recently released.

Organizations Plan for BIM ‘Centre of Excellence’ in Alberta

Five organizations intend to create an Alberta Centre of Excellence in Building Information Modeling (ACE-BIM) -- an endeavor that is expected to benefit the facilities industry beyond the Canadian province.

Reasonable Reliance on Affirmative Site Condition Information

Contractors preparing to bid on contracts are frequently forced to rely on the site condition information provided by project owners. There is neither time nor money for an independent evaluation of conditions that cannot be readily observed during a pre-bid site inspection. Bidders are entitled to reasonably rely on affirmative representations in the contract documents. But when is a representation sufficiently affirmative and when is reliance reasonable?