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The Paper Trail

Twenty years ago, a roofer could complete a construction project with a handshake and an invoice. Getting payment from customers has always been an issue, but the need for contracts and written documents was not as important as it is today. Owners have become litigation and insurance savvy and know how to take advantage of an unprepared contractor. If a problematic project results in litigation, nine times out of 10 the party with the best “paper” will win the day. In other words, the party that has the most detailed and descriptive paper trail supporting its side will more than likely succeed in court. A contractor, subcontractor, or supplier’s first line of defense to claims on a construction project is always the contract. The contract contains pertinent provisions that a party may use to pursue and defend potential claims. Although it is often difficult to negotiate the terms of a contract, to the extent possible, a contractor, subcontractor, or supplier should be aware of pro...

The Escalating Cost of Construction and Combating Price Increases

How can a roofing contractor protect itself from labor and material price increases on a project? The roofing contractor should first consider the payment method on a project. The ideal way to combat a cost increase is to perform the project on a cost plus basis. In other words, the roofing contractor’s payment is based on the actual cost plus a certain amount for profit and overhead. Although this payment method may be preferable, it is often difficult to obtain cost plus contracts given the desire for owners and prime contractors to have a fixed price. Accordingly, the roofing contractor should consider adding additional terms to its contract to protect it from labor and material price increases. The roofing contractor’s contract should include a price acceleration clause which consists of the following: If there is an increase in the actual cost of the labor or materials charged to the Contractor in excess of 5% subsequent to making this Agreement, the price set forth in this A...

Liquidated Damages Provisions in a Construction Contract

Liquidated damages are a fact of life in modern construction contracting. However, even if your contract contains a liquidated damages provision and the owner has assessed liquidated damages, that does not mean the assessment is valid or enforceable. There are a number of ways you might be able to prevent an owner from keeping contract proceeds that are rightfully yours. This article will provide the reader with an idea or two that will help keep hard-earned contract proceeds in the contractor’s pocket. In a breach of contract situation, liquidated damages are designed to provide a means to compensate the non-breaching party when the actual damages are not readily ascertainable. In other words, when the non-breaching party’s actual damages will be difficult to determine in the event of a breach, then the parties are allowed to stipulate in their contract that a set sum of money will be paid in lieu of having to prove up the actual damages. In construction contracts, the liquidate...

Famous American Buildings made out of Limeston

Limestone has been utilised throughout the ages and is a popular material within building and construction. We take a look at famous American buildings made out of limestone which still remain today and are iconic within America. The Pentagon, United States At 6,500,000 square feet, the Pentagon in Arlington County, Virginia is the world’s largest office building and serves as the headquarters for the United States Department of Defense. Designed by American architect George Bergstrom and constructed by contractor John McShain, reinforced concrete was implemented alongside Indiana limestone for the building’s exterior as a result of the lack of steel from the Second World War.  Rebuilt after September 11 2001, the building now houses over 23,000 employees and is one of the most famous buildings within America. The Lincoln Memorial, United States Constructed to honour Abraham Lincoln, 16th President of the U...

Bechtel Rolls out Virtual Reality Safety Training

Dive Brief: Global construction firm Bechtel partnered with New York City-based construction safety technology company Human Condition Safety to offer the latter's new virtual reality (VR) immersion safety training. VR technology will be piloted in conjunction with training modules for workforce education at the Bechtel Innovation Center in Houston. HCS's SafeScan program allows users to repeatedly simulate dangerous or intensive procedures. Usage data from training can be collected and combined with geographic information, safety histories and regulatory requirements to optimize future training and real-world safety programs and practices. Dive Insight: Just behind  the design and development set  in employing VR are construction safety teams, who have experienced an upshot in leveraging realistic simulations to train workers in dealing with hazardous environments or intensive maneuvers — including high-risk tasks like crane operations — without act...

Working Under the Threat of Zika: How Construction Firms can Protect Employees From the Virus

Health threats like Ebola, swine flu (H1N1), SARS (severe acute respiratory syndrome) and bird flu have all taken a turn at terrifying the world's population, each pushing those likely to be exposed to establish unique safety measures. Now, the newest health scare has emerged in the mosquito-borne Zika virus. The spread of Zika in South and Central America collided with the summer media blitz for the recent Olympic Games in Rio de Janeiro, turning an outbreak into a full-fledged panic. Once medical workers began to suspect a connection between the virus and babies born with microcephaly, a neurological disorder, women were cautioned about traveling to Brazil, and  a group of 150 health professionals  even called for the Olympics to be postponed. Additionally, outdoor workers were determined to be exceptionally vulnerable to mosquitos carrying the disease and were also encouraged to take preventative measures. Both the  Occupational Safety and Health Administrat...

Nonresidential Construction Spending Down in September, but August Data Upwardly Revised

WASHINGTON, D.C., Nov. 1 —Nonresidential construction spending fell 0.9 percent from August to September 2016, according to analysis of U.S. Census Bureau data released today by Associated Builders and Contractors (ABC). Nonresidential spending totaled $690.5 billion on a seasonally adjusted, annualized basis for the month, 0.7 percent below September 2015’s figure. The government revised the August nonresidential construction spending estimate from $686.6 billion to $696.6 billion; otherwise September spending would have risen on a month-over-month basis.  Eleven of 16 nonresidential construction subsectors experienced monthly declines. “Since late 2015, the level of nonresidential construction spending in America has been effectively flat,” said ABC Chief Economist Anirban Basu. “Undoubtedly, soft U.S. economic growth has had an impact on nonresidential construction spending growth. For several quarters prior to the third quarter of 2016, U.S. economic growth hovered around ...