ConstructionAdvisorToday

Do Owners Abuse the Convenience Termination Clause?

The right to terminate a contract for the convenience of the project owner is a powerful one. These clauses originated in public construction contracts but are now found in many private contracts as well. The owner can terminate a contract without cause. No justification is necessary. It is for the owner’s convenience. The owner pays for the direct and indirect costs of work performed prior to the date of termination, plus profit on those costs plus reasonable termination expenses. But the owner incurs no liability for what would otherwise be damages for wrongful termination or breach of contract.

Energy Star Homes Grabs Increasing Share of Market for Single-Family Residences

One-quarter of all single-family homes built nationally in 2010 earned the federal Energy Star designation, up from 21 percent the previous year. To earn the designation, a home must meet U.S. Environmental Protection Agency guidelines for energy efficiency, be at least 15 percent more energy efficient than homes built to the 2004 International Residential Code (IRC), and include additional energy-saving features that typically make them 20–30 percent more efficient than standard homes.

AGC, LCI Form Partnership to Promote Lean Construction

The Associated General Contractors of America (AGC) and Lean Construction Institute (LCI) have finalized an agreement to promote lean construction through an education program targeted to a wide variety of professionals in the construction community. The agreement, negotiated during the summer, takes effect immediately and will last for at least three years.

Should Construction Lenders Communicate with Constructors?

Construction contractors necessarily rely on the creditworthiness of project owners. Construction requires considerable capital. A contractor needs to know the owner will be able to make progress payments. On private projects, much of the construction capital is borrowed. This raises a question: Does a construction lender have an obligation to keep a contractor informed of the project owner’s financial condition?

LEED 2012 to Include Changes to Materials & Resources Credit Category

“LEED 2012,” the next update to the U.S. Green Building Council’s (USGBC) Leadership in Energy and Environmental Design (LEED) green building program, will include revisions to the Materials & Resources (MR) credit category. The organization, which closed the second public comment period for the update Sept. 14, hopes to launch LEED 2012 in early November of next year, USGBC spokesperson Ashley Katz told Green Building Insider.

Construction Professionals Urged to Prepare for the New Face of BIM

Several changes are on the way in the world of building information modeling (BIM), and professionals in the construction community need to prepare for them, Design Atlantic LTD President Finith Jernigan told attendees of a two-part webinar series that WPL Publishing hosted Sept. 14-15. 

Who Should Be Responsible for Job Site Safety?

Construction contracts frequently contain boilerplate language where the contractor assures the project owner that all applicable federal, state and local regulations, including safety regulations, will be followed at the job site. Does this mean the contractor assumes responsibility for the on-site safety practices of its subcontractors? That was the contention in a recent case.

New Resolution Intended to Boost Energy Efficiency in Commercial Buildings

A group of regulatory utility commissioners has adopted a resolution that is designed to promote energy-efficiency improvements in commercial buildings across the United States. Specifically, the new National Association of Regulatory Utility Commissioners (NARUC) resolution encourages state public utility commissions (PUCs) to provide commercial building owners with access to whole-building energy-consumption data to support energy-efficient building operations. However, Building Owners and Managers Association (BOMA) International Vice President of Advocacy Karen Penafiel admitted to Green Building Insider (GBI) that it is “not going to be easy” getting the resolution implemented.  

New IFMA-I2SL Partnership to Focus in Part on BIM

Building information modeling (BIM) will be a component of a new alliance that the International Facility Management Association (IFMA) and International Institute for Sustainable Laboratories (I2SL) recently formalized. Under their memorandum of understanding (MOU), the organizations intend to address various topics, such as using BIM as a facility-management tool. The overall goal of the two-year agreement is to promote facility management education, credentials, and research for sustainable laboratories and related high-technology facilities.

Can Contractors Challenge Negative Performance Evaluations?

With today’s emphasis on the wise expenditure of taxpayer dollars, public entities are becoming more aggressive regarding contractor accountability. Media reports of malingering, claim mongering contractors and million dollar change orders put pressure on public officials. One response has been performance evaluations which are stored in a database and used in future procurement decisions.