ConstructionAdvisorToday

CMRA Maintains Membership Base Amid Economic Storm

The Construction Materials Recycling Association (CMRA) recently declared that its membership base has been able to weather the economic storm of recent years. “Despite difficult economic times, [we have] managed to maintain most of [our] membership base, unlike many other trade associations,” according to CMRA. The group attributed the stability to the work it has been doing in serving construction and demolition (C&D) recyclers.

BIM Provision Included in Recently Introduced House Bill

Rep. Russ Carnahan (D-Mo.) has introduced legislation that is designed in part to promote building information modeling (BIM) and integrated design processes.  His High-Performance Buildings bill (H.R. 3371) would require the U.S. General Accountability Office (GAO) to study and report on the use of integrated design processes and BIM for the design and construction of federal buildings.

Should Notice-of-Claim Provisions Be Strictly Enforced?

Construction contracts usually contain notice-of-claim provisions. The contractor must, within a stated period of time, notify the project owner in writing of any occurrence which may give rise to a claim for additional compensation under the contract. The policy behind these requirements is sound. Owners should have the opportunity to respond to problems as promptly as possible while options are available and costs can be mitigated.

New Law Restricts the Use of DoD Funds for Obtaining LEED Gold or Platinum Certification; GBI Profiles Congressional Legislation

President Obama (D) has signed legislation (P.L. 112-81; H.R. 1540) preventing the use of U.S. Department of Defense (DoD) funds for garnering Leadership in Energy and Environmental Design (LEED) Gold or Platinum certification except under certain circumstances. Specifically, no funds authorized to be appropriated by the new National Defense Authorization Act for fiscal 2012 (FY’12) or otherwise made available for DoD for FY’12 may be obligated or expended for achieving Gold or Platinum certification, the two highest designations in the U.S. Green Building Council’s (USGBC) suite of green building rating systems.

Consultant Reports that the Demand for Cutting-Edge Construction Software is Increasing

The demand for cutting-edge construction software is increasing, according to a new report from CTS Inc. President Sheldon Needle, a construction industry consultant. The report examines the business drivers behind the jump in construction technology investments and makes a case for buying construction software this year.

What Do ‘Acceptable Industry Standards’ Add to a Contract?

Construction contracts commonly recite that all work must be performed in accordance with acceptable industry standards. But what are these standards, and how are they determined? Does a recitation of this nature really add anything to a construction contract? Two recent cases addressed these issues head on.

Global Green Building Industry to Continue Rebounding: Yudelson

Expect the global green building industry to continue rebounding in 2012 despite ongoing economic difficulties in most developed countries, according to green building consultant Jerry Yudelson. This is one of 10 green building “megatrends” that he foresees for this year.

Revised Standard for Revenue Recognition Expected to Be Finalized Late This Year

The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) have issued for public comment a revised draft standard to change the financial reporting requirements of International Financial Reporting Standards (IFRSs) and U.S. Generally Accepted Accounting Principles (U.S. GAAP) for revenue and some related costs from contracts with customers. The proposal, which would replace IAS 18 Revenue, IAS 11 Construction Contracts and related interpretations, and, in U.S. GAAP, guidance on revenue recognition in Topic 605 of FASB’s Accounting Standards Codification, is expected to become a final standard late this year.

Gearing Up for the New Year!

Construction Advisor Today (CAT) is getting ready for the new year and will resume its regular coverage of construction-related developments and insight next week. In the meantime, here are a few brief notes of interest from all three sections of CAT:

Do You Always Follow Change Order Procedures?

Changes are a fact of life in the construction process. Contract documents give the project owner the right to expand, reduce or otherwise alter the scope of work. The contract documents also spell out a process whereby contractors propose, and project owners approve, change orders. Subcontracts include similar provisions. Failure to adhere to the stipulated process can be costly. A Michigan subcontractor recently learned this the hard way.