Trends in Project Delivery Methods in Construction
April 03, 2023 —
Sarah B. Biser - ConsensusDocsThe three key measures of a construction project’s success are cost, quality, and time (delays). The project delivery method that the owner of the project selects can affect each of these metrics. Project delivery methods in complex construction projects evolve as technology and processes improve. The traditional methods of design-bid-build (DBB), design-build (DB), and construction management (CM) have been the standard for many years. More recently, however, newer methods such as integrated project delivery (IPD), and public-private partnerships (PPP) have gained traction.
Design – Bid – Build (DBB)
Design-bid-build is the oldest, most commonly used method of project delivery. It involves three distinct phases: design, bid/award, and construction. An owner asks a team of professionals, such as architects, engineers, and contractors, to produce design documents that will be used to solicit bids. After the owner evaluates the bids and chooses a contractor, a construction contract is written. While this method is the most familiar and well-understood, it can lead to disputes during the construction process as changes are made to the original plans.
In DBB, the owner bears the risk for funding increased costs attributed to design changes and related delays – thanks to the Spearin Doctrine, which holds that the owner impliedly warrants the information, plans, and specifications that it provides to a general contractor. See 248 U.S. 132 (1918) Although the owner cannot claim against the contractor, it can make a claim against the design firm.
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Sarah B. Biser, Fox Rothschild LLP (ConsensusDocs)Ms. Biser may be contacted at
sbiser@foxrothschild.com
Defense for Additional Insured Not Barred By Sole Negligence Provision
August 11, 2011 —
Tred R. Eyerly - Insurance Law HawaiiA general contractor was entitled to a defense as an additional insured when the underlying complaint did not allege it was solely negligent. A-1 Roofing Co. v. Navigators Ins. Co., 2011 Ill. App. LEXIS 656 (Ill. Ct. App. June 24, 2011).
A-1 was the general contractor for a roof resurfacing job at a high school. Jack Frost Iron Works Inc. (“Frost”) was one of A-1’s subcontractors. Frost had a CGL policy with Navigators Insurance Company under which A-1 was an additional insured.
An employee of Frost’s subcontractor Midwest Sheet Metal Inc. was killed at the job site when a boom-lift he was operating flipped over. The boom-lift had been leased by another Frost subcontractor, Bakes Steel Erectors, Inc. (BSE). The deceased's estate filed suit against A-1, BSE and two other defendants.
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii. Mr. Eyerly can be contacted at te@hawaiilawyer.com
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Will COVID-19 Permanently Shift the Balance between Work from Home and the Workplace?
April 13, 2020 —
Adam Weaver - Gravel2Gavel Construction & Real Estate Law BlogOn March 15, 2020, the Center for Disease Control and Prevention (CDC) issued formal guidance to combat the spread of the coronavirus by recommending against gatherings of 50 or more people for the next eight weeks (CDC guidance), which includes nearly every office building in America. Thus, began the most significant work from home experiment this country has ever seen.
With the majority of the workforce working from home, many employees see this as an opportunity to finally prove that, “yes, that meeting could have been an email.” However, while workers will not be distracted by constant (and potentially unnecessary) meetings, a number of issues and questions arise with working from home.
Most importantly, is this working from home experiment a temporary opportunity for businesses to test remote work ideas or is this the new normal? And how will this affect commercial real estate moving forward?
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Adam Weaver, PillsburyMr. Weaver may be contacted at
adam.weaver@pillsburylaw.com
Contractor Changes Contract After Signed, Then Sues Older Woman for Breaking It
September 03, 2015 —
Beverley BevenFlorez-CDJ STAFFChannel 13 Who TV reported, in Winterset, Iowa, Mary Gregory allegedly signed an estimate for hail damage repair to her home, and was later told by the contractor that it was a contract. When a crew showed up to her home to perform the work, she turned them away. Then, Gregory received a letter from an attorney demanding eight thousand dollars for breach of contract.
It turns out that the contractor altered the estimate Gregory signed and submitted it to the insurance company. According to Who TV, the altered estimate “contained work that Gregory says she didn’t authorize and a price tag of $32,134.” Jim Nelle, the contractor, admitted that he added to the contract after it was signed. He claims he was only trying to help her.
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Gilbert’s Plan for Downtown Detroit Has No Room for Jail
October 08, 2014 —
Chris Christoff – BloombergBillionaire Dan Gilbert envisions a vibrant and shiny downtown Detroit, where he owns a casino and about 60 buildings. His urban Eden doesn’t include a jail with 2,000 criminals.
Gilbert is resisting county officials’ plans to restart construction on a half-finished jail mired in cost overruns, criminal investigations and debt. The project, which the Wayne County Commission may revive tomorrow, would replace a complex on land that Gilbert, the 52-year-old founder and chairman of Detroit-based Quicken Loans Inc., offered to buy for $50 million to build a hotel, housing and stores.
The dispute over the jail, which has sat unfinished for 16 months, pits one of Detroit’s most prominent boosters against a county government over how to reinvigorate the city’s heart. Gilbert, whose company is the nation’s largest online retail mortgage lender, has invested $1.3 billion there, betting on the former auto-manufacturing capital’s resurgence after decades of decline that pushed it into a record $18 billion municipal bankruptcy.
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Chris Christoff, BloombergMr. Christoff may be contacted at
cchristoff@bloomberg.net
City Council Authorizes Settlement of Basement Flooding Cases
March 12, 2014 —
Beverley BevenFlorez-CDJ STAFFLast July in Dearborn, Michigan, “torrential rain” caused flooding to hundreds of basements, according to Press & Guide. Of the 250 claims filed by residents, “the city determined that about 150 were caused by defects in its water or sewer lines. About 125 of the claims to be settled are for more than $3,000; 26 are for $3,000 or less.”
Press & Guide reported that “Attorney Tarek Baydoun, who is representing some clients whose basements flooded, asked about recourse for ‘botched’ claims, and was concerned because the city hasn’t released the list of those with whom it is settling.” The Mayor, Jack O’Reilly, stated that the law department would release the list to the city council.
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OSHA Issues New Rules on Injury Record Keeping
August 19, 2015 —
Craig Martin – Construction Contractor AdvisorOn July 28, 2015, OSHA issued proposed rules seeking to clarify an employer’s ongoing obligation to make and maintain accurate records of work-related injuries and illness. The new rules were drafted in response to the U.S. Court of Appeals decision in AKM LLC, d/b/a Volks Constructors v. Secretary of Labor, in which a contractor successfully argued that OSHA’s citation was issued well beyond the six month limitation period.
OSHA’s Injury Record Keeping Obligations
The Occupational Safety and Health Act requires each employer to make, keep and preserve records of workplace injuries and illnesses. 29 U.S.C. § 658(c). OSHA has promulgated a set of regulations which require employers to record information about work-related injuries and illnesses in three ways. Employers must prepare an incident report and a separate injury log “within seven (7) calendar days of receiving information that a recordable injury or illness has occurred,” 29 C.F.R. § 1904.29(b)(3), and must also prepare a year-end summary report of all recordable injuries during the calendar year, id. § 1904.32(a)(2). An employer “must save” all of these documents for five years from the end of the calendar year those records cover. 29 C.F.R. § 1904.33(a).
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Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com
Don’t Miss the 2015 West Coast Casualty Construction Defect Seminar
April 01, 2015 —
Beverley BevenFlorez-CDJ STAFFThe 22nd West Coast Casualty (WCC) Construction Defect Seminar returning to the Disneyland Hotel in Anaheim, California is just six weeks away.
The annual event begins on Thursday, May 14th, with breakfast and registration starting at 7:30am. Panel discussions on various construction defect related topics begin at 8:30am and continue through the morning and afternoon, followed by a cocktail reception in the early evening. The following day includes break-out sessions with the event concluding in the afternoon.
Attendees can enhance their seminar experience with the WCC Construction Defect Seminar Mobile App. The event schedule, speaker information, product information, sponsor details, and interactive floorplan can all be accessed through the app. Furthermore, registered attendees will have access to session presentations.
The discounted, early registration ends April 15th, 2015.
Download an Invitation and Register for the Event...
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