ConstructionAdvisorToday

Are Limitations on Subcontracting Advisable and Enforceable?

Public works contracts frequently include clauses limiting the subcontracting of the work. The prime contractor is required to perform a stipulated minimum percentage of the work, typically 50 percent, with its own forces. The policy behind these limitations is to award public contracts to companies that will actually construct the projects, not just bid, bond and broker out the work.

Energy-Saving Performance Contracts Reportedly Gaining ‘Renewed Interest’

Washington, D.C. -- Energy-saving performance contracts (ESPCs) “are getting a lot of renewed interest right now” for helping the federal government achieve its energy-efficiency goals, Federal Performance Contracting Coalition Executive Director Jennifer Schafer told attendees of the 15th Annual Congressional Renewable Energy & Energy Efficiency Expo + Forum last week. In addition to a resurgence in ESPC popularity, other news coming out of the conference involves the progress of two federal facilities that are expected to serve as models for green design and operation, a prediction concerning Building Performance Institute Inc.’s (BPI) certification program for home performance, and the market outlook for energy-efficient light-emitting-diode (LED) technology. Here is a summary of each development:

Researchers See No Quick-and-Easy Fix for Improving Construction Craft Productivity

There is no quick-and-easy solution for improving construction craft productivity, but a series of steps can make significant headway toward this end, according a 368-page report that the Construction Industry Institute (CII) published earlier this month. The report focuses on the second phase of a six-year research project for finding the best ways to improve construction craft productivity.

Are Subcontractor Pass-Through Claims a Sound Administrative Practice?

A prime contractor’s sponsorship of a subcontractor’s claim is an expeditious way to resolve disputes involving significant subcontractor costs. Under these arrangements, frequently referred to as pass-through agreements, the prime asserts a claim against the project owner which includes the costs incurred by the sub. The prime passes through to the sub the money recovered from the owner, if any, attributable to the sub’s work. The subcontractor in turn waives any other claim against the prime contractor.

Dependence on Energy Efficiency Skyrockets

A combination of several factors has led to an increased reliance on energy efficiency among building owners and operators, according to new research findings from Johnson Controls (JC). The multinational Fortune 500 company believes that a heightened awareness of energy efficiency’s financial payback, a proliferation of government incentives for going green, and the increasingly appealing prospect of bolstering property values and positive publicity all have contributed to the following startling result from a recently conducted JC survey: 85 percent of building owners and operators globally depend on energy management to drive operational efficiency, a 34 percent increase in the last two years.

76 New Numbers/Titles Added to MasterFormat

The Construction Specifications Institute (CSI) and Construction Specifications Canada (CSC) have added 76 new numbers/titles to MasterFormat, a master list of numbers and titles classified by work results or construction practices that is used to organize project manuals, detail cost information, and relate drawing notations to specifications. In addition, the organizations have changed 18 existing numbers/titles and deleted three that duplicated other existing numbers titles.

Can’t We All Get Together to Resolve This Matter?

Construction projects typically involve numerous participants, each with its own role. When there is a claim or dispute, it is not necessarily limited to two of those parties. The performance of many parties may be called into question. In order to arrive at a resolution which is fair, consistent and comprehensive, it is crucial to get all parties into a single forum. This is not always easy to accomplish.

4 Techniques for Mitigating Risks in Green Building Projects Outlined During WPL Publishing Webinar

There are four key ways to mitigate risks that may arise in green building projects, Christopher Nutter, an associate director in Navigant Consulting Inc.’s Global Construction Practice, told a group of construction professionals attending a WPL Publishing webinar, entitled “Emerging Risk in Green Design and Construction,” earlier this month. The strategies “really are the same types of risk-mitigation techniques that would be used for any design or construction project.” Such risks can be mitigated through the following actions, he said:

Mixed Legislative Blessings for Design-Build Advocates

There is good news and bad news to report for construction professionals who favor legislation promoting design-build project delivery, with several key developments recently taking place at both the state and federal levels.

Recovery of Attorney Fees: Appropriate Deterrent or Welfare for Lawyers?

The Bid Protest Regulations of the U.S. Government Accountability Office (GAO) contain a powerful incentive for procuring agencies to obey the statutes and regulations. If a bidder successfully protests an agency action, the GAO may instruct the agency to reimburse the protester for the attorney fees incurred in the protest.