When a construction project goes badly, the project participants will start pointing fingers. Did the contractor follow the design? Did the Owner offer an accurate design? If the contractor followed a faulty design, a court may or may not hold the contractor liable.
Public-sector construction contracts can provide a wide berth of benefits but may also present a variety of practical and legal
You’re invited to the LCI Ohio Valley Chapter’s Benefit in Lean Series on April 24, 2012: A tour of Toyota’s Georgetown Plant followed by a Roundtable Discussion on Application of Lean Manufacturing Principles in Construction.
On February 3, 2012, the Ohio State Architect’s Office published the necessary contract documents for the construction manager at risk project delivery method on Ohio public construction projects. This release comes as part of the ongoing implementation of the laws and regulations making up the Ohio Construction Reform (OCR) and will be of great interest to the Buckeye State’s construction industry.
Picture this: An owner hires a contractor to provide construction and engineering services for its upcoming project. The project progresses, and the contractor realizes the flooring specified for the project will not be conducive to the owner’s use of the building. At the owner’s direction, the contractor substitutes another flooring for the project, more compatible with the owner’s use. As a result of this substitution, the project is delayed, and the contractor suffers damages. Later, when the owner refuses to pay the contractor’s damages, the contractor is forced to seek retribution from the owner in court.
In June 2011, Ohio law governing public construction projects changed for the first time in 134 years. This law, known as Ohio Construction Reform (OCR), provides for new methods of construction delivery. Design build is one method authorized by the OCR, which proposes regulations for choosing a design build firm that presents the “best value” to the public authority.
America’s commercial design and construction industry is fragmented, adversarial and inefficient. The industry that depends more than all others upon coordination, cooperation and teamwork among multiple participants is our most adversarial. It is the only major industry that is less productive today than it was in 1964, while other industries have doubled their productivity.
Attention: Program update for LCI’s Benefits of Lean Series Seminar on February 15, 2012.
You’re invited to the LCI Ohio Valley Chapter’s Benefit in Lean Series on February 15, 2012: Lean in the Field: What Works and What Does Not.
According to the owners’ wishes, contracts frequently require contractors to put changes to the work in writing in order to be compensated. However, throughout the construction project, owners often become lackadaisical with contract requirements and verbally agree to or pay for additional work without requiring a written change order. An owner may have no problem compensating the contractor for certain work that the owner knew about or specifically ordered. However, what the owner may not realize is that waiving the written requirement in one situation may waive the requirement in others.
The Louisville and Southern Indiana Ohio River Bridges Project is currently one of the largest public infrastructure projects in America and continues to move toward construction. However, one of the major issues that must be decided before construction can commence is determining what delivery method will be used on the project. On September 13, 2011, the Louisville and Southern Indiana Bridges Authority issued a Request for Information (“RFI”) to aid in its selection of a delivery model and financial plan for the project.
The Kentucky Court of Appeals issued a decision this summer reinforcing the strict burden placed on contractors to comply with safety regulations. Specifically, the decision requires employers to take personal responsibility to ensure that their employees on the work site follow those safety regulations. To issue a monetary penalty for a safety violation, the Kentucky Occupational Safety and Health Review Commission (KOSHRC) must find that the employer had knowledge of the violation. However, the knowledge requirement includes either “actual” or “constructive” knowledge. With that in mind, contractors need to understand that KOSHRC and the Kentucky Courts interpret “constructive knowledge” very broadly.
The Ohio Valley Chapter of the Lean Construction Institute is please to announce its next program. On November 16, 2011,
Recently passed House Bill 153 provides public authorities with significantly expanded construction contracting options. Prior to this Bill, Ohio public authorities used a multiple prime method of contracting. Now, they may utilize a number of construction contracting options.
Schinnerer & Company, a major insurance firm, is now offering a new insurance policy for integrated project delivery. It provides one project-specific policy, which covers the exposure of designers, construction managers, contractors, and subcontractors with design responsibilities.
After years of ambiguous cases, the Kentucky Supreme Court recently clarified Kentucky’s position on the economic loss doctrine in Giddings & Lewis, Inc. v. Industrial Risk Insurers, Nos. 2009-SC-000485-DG, 2009-SC-000825-DG, 2011 WL 2436154 (Ky. June 16, 2011). When a defective product damages only itself, the economic loss doctrine bars tort claims, limiting recovery to contractual remedies. Economic losses primarily “deprive the purchaser of the benefit of his bargain,” and thus contract law is the appropriate remedy for such losses. Economic losses often include costs for repair or replacement of the product itself, lost profits, and other similar losses. On the other hand, when a defective product injures people or other property, tort claims remain appropriate remedies.
Whispering Farms is a sprawling, upscale, residential development in suburban Cincinnati. The neighborhood boasts spectacular views of the Great Miami River, wooded lots and large homes. What Whispering Farms doesn’t have, however, might surprise you: Roads
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Particularly in this economy and construction market, contractors want to get paid for their work as quickly as possible. Delayed payments can have devastating effects. They can result in work stoppage, subcontractor disputes, and even business closures. Though not a guarantee, here are a few tips that may help contractors get paid more quickly:
Standard Integrated Project Delivery Agreements allow for incentive pools benefiting portions of the design and construction teams. The purpose of these incentives is to encourage collaboration and savings.
Freedom of contract, especially in regard to allocating risks of loss and damages, is a hallmark of construction law. The Economic Loss Doctrine (ELD) is intended to enshrine the principle of voluntary risk allocation by prohibiting participants in construction projects from suing for their economic losses in the absence of a contractual relationship. Recent court decisions have broadly construed economic loss to include the cost of repair (Tennessee), damage to any part of a building under construction (Indiana, Hawaii and Utah), damage to reputation and a company’s goodwill (Kentucky), loss of profits (Texas and Arizona) and additional financing costs (Ohio).
Attorney Will Lichtig created a new contract form for use on projects adopting Lean Project Delivery. This contract was the basis for the Tri-Party Agreement for Collaborative Project Delivery form put forth by the Consensus Document group.
Oftentimes, in the context of a construction contract, there are three primary parties: (1) the owner of the project; (2) the architect, who is responsible for drawing up the various plans and blueprints necessary for the construction of the project; and (3) the general contractor, who is responsible for overseeing and supervising the project’s actual construction. While these three parties are fundamental to a properly functioning construction project, their motivations, loyalties, and interests may not always be aligned. As such, an owner must be mindful of the various contractual relationships among the primary parties to the construction contract.
Most Owners are unaware of the different project delivery options available to them. But those who are aware may select the project delivery method that best suits their projects. This blog quickly summarizes four project delivery methods available to Owners.
Henry Gifford, a self-styled energy efficiency expert, has teamed up with Consumer Class Action lawyer, Norah Hart, to take on the U.S. Green Building Council (USGBC). In a lawsuit filed on October 10, 2010, Mr. Gifford, on behalf of an intended class of every person ever involved in L.E.E.D Green Building Certification® (“LEED”), made sweeping allegations that LEED was a scam perpetrated by the USGBC to monopolize green construction certification through use of deceptive claims about the efficacy of the LEED process. In essence, Gifford claims that the USGBC is trying to enrich itself by cornering the market for certification of “Green Buildings.” Critics respond noting Gifford’s lack of scientific proof in support of his claims.