Very few construction projects happen without subcontractors. Some general contractors self-perform all or a portion of the construction work, but, most often, major and minor trades contribute the lion’s share of labor and materials. Read the article >>>
Almost-Completed VA Hospital Project in Colorado More Than $1B Over Budget
The Aurora hospital has been a thorn in the VA’s side for years. The agency will miss the original completion date by four years, but the facility helped catalyze Congress’ decision to put the Army Corps of Engineers in charge of any VA construction project expected to cost $100 million or more. Read about it here >>>
Workers’ Compensation Rate Calculation New Benchmark for Contractors’ Qualification To Bid
A complicated calculation for determining workers compensation premiums has evolved into a do-or-die benchmark on whether contractors are qualified to bid on many jobs, and some say that’s not fair, especially for smaller contractors. It’s called the experience modification rate (EMR), and it’s based on previous workers’ comp claims versus payroll and other factors. The rate can lead to a reduction or increase in a company’s workers’ comp premiums. But over the years, the rate has come to mean much more in the construction industry, where the number has often become the final word on a construction company’s safety practices. Tell me more >>>
Subs On Athletic Apparel Company’s Expansion Seek Recourse For Pay Disputes
Five years in, the ambitious and ever-evolving headquarters expansion at Nike is finally producing the first completed buildings. It’s also left a trail of angry subcontractors. The strikingly modernistic structures taking shape on Nike’s campus near Beaverton have proved difficult and time-consuming to build. Subcontractors and their lawyers claim in court filings the company and its general contractor, Hoffman Construction, have repeatedly modified or broadened the scope of the project while refusing to cover the extra costs. That includes completed work that was ripped out and redone, they say. Get the story here >>>
Resilient Structures, Infrastructure Among 2018’s Trends In Construction
After a robust 2017, commercial construction companies are anticipating an even stronger 2018, with the majority reporting they plan to expand their staffs, according to Dodge Data & Analytics. As professionals seek to map out 2018 and beyond, there are a number of trends shaping the construction industry. Some are evolutions of past years, such as offsite construction and an increasing reliance on technology, and some trends are new, such as a focus on resiliency after the most damaging hurricane season on record and devastating fires in California. Read more here >>>
Court Denies Surety’s Move To Dismiss Case, Finds That Venue Was Proper
Use of the Word “in” Indicates Geography; Use of the Word “of” Indicates Sovereignty: Federal District Court in Maryland Holds That Venue Is Proper in Federal Court in Maryland Where Forum Selection Clause Requires Action to be Brought “In the District or County” Where the Prime Contractor Is Located. Tell me more >>>
Clear Contract Language Is Key When GCs Share Risk Of Nonpayment With Subs
Every contract involves the risk of insolvency, and every construction subcontract involves the risk of the owner/developer failing to make the payments that the contractor intends to use to pay its subcontractors. Frequently, general contractors seek to shift this risk onto their subcontractors through the use of clauses which describe payment from the owner to the contractor as a condition precedent to payment to the subcontractor. Simply put, when the contractor is successful in shifting the risk to the subcontractor, the clause is known as “Pay-If-Paid”. If contract language is not sufficient to transfer the risk, the clause is viewed as “Pay-When-Paid”. A Pay-When-Paid clause merely defers the timing of the payment due to the subcontractor until the contractor has …
Contractors Should Ensure Subs, Suppliers Comply With Buy American Act
The federal government has a long-standing preference for incorporating domestic materials and products into public construction projects. While a number of statutes and regulations promote this policy, the Buy American Act of 1933 (BAA) is the oldest and arguably most well-known. The essence of the BAA’s construction provisions sounds simple: the use of foreign-produced materials and products on public construction projects is prohibited. However, a dense web of regulations and statutes interact to create exceptions and exemptions to the BAA’s application, making the BAA one of the most complex bodies of law to comprehend. Those contractors who fail to comply with the BAA’s requirements can face costly legal issues, debarment or, in some situations, criminal investigation and prosecution. With the …
Report: Majority of Contractors Not Utilizing Emerging Safety Tech
Most construction contractors are not utilizing emerging technology such as drones to improve workplace safety, but change is expected as the benefits of using these technologies are proven, awareness grows and their prices start to decrease, according to a new study. The study found that 62% of contractors do not use any of these technologies, which is “no surprise” considering they are still emerging, according to the report by Silver Spring, Maryland-based CPWR-The Center for Construction Research and Training and New York-based Dodge Data & Analytics published Tuesday. Tell me more >>>
DOT Working With Surety To Complete Delayed Bridge Project In Queens
The oft-delayed bridge deck replacement project at the intersection of Metropolitan Avenue and Fresh Pond Road isn’t going to be wrapping up anytime soon. According to the Department of Transportation, its contract with New Jersey-based firm Mugrose Construction for the project at the Middle Village-Ridgewood border was defaulted, indefinitely delaying construction. “The DOT defaulted the contractor working on the Metropolitan Avenue bridge deck replacement,” an agency spokesperson told the Chronicle in a Wednesday email. “We are working closely with the bonding company to get this project completed as quickly as possible after it suffered delays beyond our control.” Read the article >>>