Avoiding Project Planning Disasters: How to Spot Problem Projects
December 13, 2021 —
James T. Dixon - Construction ExecutiveThe burden of project planning falls first and foremost upon a project owner. Owners have varying levels of sophistication, and the smart ones fill weak spots on their staff by engaging project managers, construction managers and owner’s representatives.
Typically, the owner then delegates the largest part of the project’s plan to the contractor in terms of creation and execution of a critical path method schedule during the construction phase. Before accepting that burden, a wise contractor will evaluate the project to determine if it is on a path to success or disaster. It is guaranteed that an owner’s problems will become the contractor’s problems in one way or another.
There are legendary projects that were also legendary planning failures. The iconic Sydney Opera House is one. The design competition began in 1955. After selecting the architect, the owner implemented a team that involved that architect, a structural engineer and an executive committee of inexperienced politicians. The original plan included a budget of $7 million (Australian) and a completion schedule spread over four years. That executive committee forced the project to start before designs were complete, doubled the number of theaters and then put a strangle-hold on the payment process, eventually causing the architect to quit and return to Europe with the construction drawings. The Opera House opened for its first performance in 1973—14 years late and $98 million over budget.
Reprinted courtesy of
James T. Dixon, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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No Duty to Defend Under Pollution Policy
February 11, 2014 —
Tred R. Eyerly – Insurance Law HawaiiThe court found there was no duty to defend or indemnify under a pollution policy for claims arising from a building fire. URS Corp. v. Zurich Am Ins. Co., 2014 N.Y. Misc. LEXIS 222 (N.Y. Sup. Ct. Jan. 16, 2014).
Two firemen were killed while fighting a fire at the Deutsch Bank building in New York City. The owner of the building, URS, was sued by the estates of the two deceased firemen and other firemen who were injured by the fire.
URS was an additional insured under a contractors pollution liability policy issued by Hudson Specialty Insurance Company. The policy promised to pay for damages to the insured "if the damages result from a pollution condition." "Pollution condition" was defined as "the discharge, dispersal, release or escape of smoke, vapors, fumes, acids, alkalis, toxic chemicals, [etc.]" The policy explicitly noted that it did not provide commercial general liability coverage. Hudson denied coverage and URS sued.
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Tred R. Eyerly, Insurance Law HawaiiMr. Eyerly may be contacted at
te@hawaiilawyer.com
Hundreds Celebrated the Grand Opening of the Associated Builders and Contractors of Southern California Riverside Construction Training Center
February 14, 2023 —
Associated Builders and ContractorsRIVERSIDE, Calif., Feb. 10, 2023 (GLOBE NEWSWIRE) -- Today the Associated Builders and Contractors Southern California Chapter (ABC), hosted hundreds of community members as they cut the "ribbon" of their third training center in Southern California.
"Today is a celebration, but it also represents a continued commitment by ABC and our membership to supply a skilled, trained, and safe construction workforce for Southern California," stated Nick McFayden, ABC SoCal's Board Chair.
Jon Krystafik, Vice Chairman of the Training Trust commented, "Our training facility is unique. You may have toured other facilities but with ours you will see we don't just train one craft. Here Apprentices and Craft trainees are receiving cutting edge training in Electrical, Plumbing, Low Voltage and HVAC/Sheet Metal." Krystafik added, "Our trustees had a dream 10 years ago to train residents in the inland empire. Today it is a reality!"
ABC Southern California Chapter is an association of contractors that believe in the Merit Shop Philosophy. Merit shop encourages open competition and a free enterprise approach that awards contracts and employment based solely on merit, safety, quality, and cost, regardless of labor affiliation. The chapter is one of 68 throughout the country and represents nearly 400 member companies.
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ASHRAE Approves Groundbreaking Standard to Reduce the Risk of Disease Transmission in Indoor Spaces
July 10, 2023 —
ASHRAEATLANTA, June 27, 2023 (GLOBE NEWSWIRE) -- ASHRAE announced the approval for publication of its highly anticipated standard to reduce the risk of airborne infectious aerosol transmission in buildings, bringing numerous benefits to occupants and promoting healthier environments.
ASHRAE Standard 241, Control of Infectious Aerosols establishes minimum requirements to reduce the risk of disease transmission by exposure to infectious aerosols in new buildings, existing buildings, and major renovations. Infectious aerosols are tiny, exhaled particles that can carry pathogens that cause infections or disease. These particles are so small that they can remain in the air for long periods of time. Use of this standard could reduce exposure to the SARS-COVID-2 virus, which causes COVID-19, the flu virus and other pathogens. Standard 241 provides requirements for many aspects of air system design, installation, operation, and maintenance.
Standard 241 available now for
presale in the ASHRAE Bookstore.
About ASHRAE
Founded in 1894, ASHRAE is a global professional society committed to serve humanity by advancing the arts and sciences of heating ventilation, air conditioning, refrigeration, and their allied fields.
For more information and to stay up-to-date on ASHRAE, visit ashrae.org and connect on
Instagram,
LinkedIn,
Facebook,
Twitter and
YouTube.
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Real Estate & Construction News Round-Up (01/25/23) – Artificial Intelligence, Proptech Innovation, and Drone Adoption
February 14, 2023 —
Pillsbury's Construction & Real Estate Law Team - Gravel2Gavel Construction & Real Estate Law BlogThis week’s round-up explores new artificial intelligence tools and their projected impact on real estate agents, key trends driving proptech innovation, barriers to adopting drones in the construction industry, and more.
- Artificial intelligence (AI) has the potential to become an invaluable tool to streamline the selling journey of a property, empower buyers to make informed decisions, and enhance the work of real estate agents. (Alexandra Cain, The Urban Developer)
- Miami real estate agents experiment with the new artificial intelligence tool, ChatGPT, which can generate text based on simple prompts, to write house listings, communicate with developers, and produce content. (Martin Vassolo, Axios)
- Asset owners in Asia and Europe turn to artificial intelligence to collect ESG information across public and private markets, including from residential buildings in Japan. (Hugo Cox, Asian Investor)
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Pillsbury's Construction & Real Estate Law Team
DoD Issues Guidance on Inflation Adjustments for Contractors
August 15, 2022 —
Jennifer Harris & Abby Salinas - ConsensusDocsThe Department of Defense (“DoD”) recently issued a memorandum to contracting officers (“COs”) guiding the use of economic price adjustment (“EPA”) clauses to address inflation-related cost increases. The memorandum, entitled Guidance on Inflation and Economic Price Adjustments, comes as the year-over-year inflation rate rose to 8.6% in May, and contractors with fixed-price contracts seek ways to recover their rising costs. EPA clauses allow the parties to mitigate cost risks that present themselves as a result of circumstances beyond the contractor’s control, e.g., inflation and supply chain price fluctuations. Generally, an EPA clause will dictate that the Government bear the cost risk up to a mutually agreed-upon ceiling. EPA clauses apply to the cost portion of a contract, but do not normally apply to the profit. DFARS PGI 216.203-4.
Memorandum: No CO Authority to Grant Contractual Relief Absent an EPA Clause
The memorandum states that absent an existing EPA clause, COs do not have the authority to provide contractual relief for unanticipated inflation under a firm-fixed-price contract.
Reprinted courtesy of
Jennifer Harris, Peckar & Abramson, P.C. (ConsensusDocs) and
Abby Salinas, Peckar & Abramson, P.C. (ConsensusDocs)
Ms. Harris may be contacted at jharris@pecklaw.com
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Collapse of Breezeway Attached to Building Covered
February 24, 2020 —
Tred R. Eyerly - Insurance Law HawaiiThe federal district court found that a breezeway that collapsed during a party was covered by the commercial property policy. DENC, LLC v. Philadelphia Indem. Ins. Co., 2019 U.S. Dist. LEXIS 179083 (M.D. N.C. Oct. 15, 2019).
DENC owned an apartment complex that was insured by Philadelphia under an all-risk policy. During an early morning party, a large number of students gathered on the second-floor breezeway for a party. The students started jumping in the breezeway when a certain song started playing. The floor abruptly collapsed underneath the students.
Philadelphia sent an adjuster to inspect the breezeway a couple days later. He wrote to Philadelphia that "the sole and proximate cause of the loss is water damage occurring over an extended period of time causing the second floor breezeway to sage and the light weight concrete to crack." Shortly thereafter, the building was condemned. A structural engineer found multiple ways in which water had seeped into the breezeway's wood framing and photographed the resulting biological growth and wood decay. He concluded that the building had sustained significant long-term water intrusion which resulted in the wood framing inability to support the loads. The water intrusion was caused by the failure to properly install a water management system on the walls, a properly integrated waterproof system for the walkway slab and framing configuration, and improper venting of dryers.
DENC retained an engineer who testified that the breezeway was sagging because the concrete had broken.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
A Chicago Skyscraper Cements the Legacy of a Visionary Postmodern Architect
December 31, 2024 —
Mark Byrnes - BloombergA handsome and eclectic stretch of buildings along Michigan Avenue known as “Chicago’s Front Door” offers a view that reflects the city’s status as a destination for serious architecture. Louis Sullivan and Dankmar Adler’s Auditorium Building, where a young Frank Lloyd Wright designed interiors, is right there on Grant Park; so is Daniel Burnham’s Railway Exchange, where he drew up the 1909
Plan of Chicago.
Now a glass-and-aluminum apartment tower anchors the southern end of this scene, filling in a rare gap within this landmarked
streetwall and putting a bow on the career of another heroic figure in Chicago’s architectural history: Helmut Jahn.
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Mark Byrnes, Bloomberg