ConstructionAdvisorToday

Is Arbitration Being Applied Too Liberally?

Arbitration clauses are interpreted liberally in order to give full effect to this alternative method of dispute resolution. If there is a close call on the arbitrability of an issue, including questions regarding the scope or application of the clause itself, courts generally favor arbitration. But there must be limits.

Group Remains Hopeful that Congress Will Approve Various Proposals Promoting Energy Efficiency

The Alliance to Save Energy (ASE) is hoping that Congress will approve several proposals promoting energy efficiency before adjournment in January. Although it is an election year and lawmakers are facing multiple priorities, the advocacy group believes that bipartisan support for several of these measures provides a realistic shot at passage. Among the issues undergoing congressional consideration are the recently introduced Smart Energy bill (H.R. 4017), increased appropriations for various energy-efficiency  programs (Construction Advisor Today, Feb. 17, 2012, “Obama Requests Funding Increases for Four Key Federal Efforts to Reduce Energy Use in Buildings”), and S. 1914, which would provide a new tax credit for home efficiency upgrades.

Rate of Improvement in Construction Productivity Reportedly Slowing

Although productivity in the non-residential construction sector continues to improve, the rate of improvement is slowing, according to the results of a new survey released by FMI, which provides management consulting and investment banking to the engineering and construction industry. More than half of the professionals responding to the survey reported improvement, but most of them indicated only a slight change.

Should Fixed-Price Bids Be Corrected After Contract Award?

It seems self-evident that once a contractor enters into a fixed-price contract on publicly bid work, the base price of the contract has been established. But what if the contractor subsequently claims it made a mistake? Is a contractor entitled to an upward reformation of the contract price to correct a bid mistake?

Obama Requests Funding Increases for Four Key Federal Efforts to Reduce Energy Use in Buildings

President Obama (D) earlier this week requested substantial funding increases for four key federal programs whose mission is to minimize energy use in buildings. Specifically, his fiscal 2013 budget request proposes increased appropriations for the U.S. Department of Energy’s (DOE) Building Technologies Program (BTP), Federal Energy Management Program (FEMP), the Weatherization Intergovernmental Activities program, and the Facilities and Infrastructure program.

NBS Survey Indicates that the Use of BIM in the United Kingdom Is Growing

The share of construction professionals using building information modeling (BIM) in the United Kingdom has more than doubled since 2010, according to the results of a survey that NBS (a trading name of RIBA Enterprises LTD) released earlier this month. About one-third (31 percent) of surveyed construction professionals in the U.K. are using BIM, up from approximately 13 percent in 2010. The company completed its latest National BIM Survey late last year and collected responses from about 1,000 construction professionals, representing a range of business sizes and disciplines from across the industry, including architecture, engineering, and surveying.

Are ‘Pay-If-Paid’ Clauses Still Widely Used?

Pay-if-paid clauses shift the ultimate risk of project owner nonpayment from the prime contractor to a subcontractor. Owner payment for the subcontractor’s work is a condition precedent to the contractor’s obligation to pay the sub. The harsh ramifications of these clauses, and the perceived superior bargaining power of large general contractors over specialty trade contractors, have led to legislative and judicial restrictions on enforceability.

Healthcare Facilities Survey Indicates Growing Concerns about ‘Green Washing’

Concerns about “green washing” continue to impede the growth of more cost-efficient and sustainable healthcare facilities, according to a recent survey conducted by Corporate Realty, Design & Management Institute (CRD&MI) in partnership with IFMA (International Facility Management Association) Health Care Institute (HCI). The survey included a mix of architects, designers, engineers, hospital facilities managers, healthcare engineers, project managers, and contractors from 20 metropolitan areas across North America.

Construction Financial Management Group Wants More Time to Mull FAF’S Plan for a Private Company Standards Improvement Council

The Construction Financial Management Association (CFMA) has encouraged the Financial Accounting Foundation (FAF) not to follow through with a plan to create a Private Company Standards Improvement Council (PCSIC) without further outreach to address various CFMA concerns. Under FAF’s plan, PCSIC would identify, propose, deliberate, and formally vote on specific exceptions or modifications to U.S. Generally Accepted Accounting Principles (GAAP) for private companies.

The Misuse of Expert Opinion

Expert witnesses frequently have a lot to offer. Their specialized expertise can assist the finder of fact, be it judge, jury or administrative board, in understanding factual evidence or resolving a fact that is in question. But expert testimony can also be misused.