Effectively Managing Project Closeout: It Ends Where It Begins
August 06, 2019 —
William E. Underwood - ConsensusDocsProject closeout is sometimes one of the last things on a contractor’s mind at the beginning of a project, but project closeout can have a huge impact on a contractor’s overall profitability and success. Effectively managing the closeout process is critical, and it all begins with the negotiation and execution of the project contract. This contract can, and should, provide a complete roadmap for project closeout, as addressing these issues on the front end can set up the parties for successful project completion. It is then equally important to re-review the terms of the contract as project closeout approaches to ensure that everyone, including the owner, adheres to all contractual requirements.
This article examines several pertinent issues related to project closeout that should be addressed during the contracting stage, including defining substantial and final completion, inspection and acceptance, punch lists, and warranties.
Defining Substantial and Final Completion
Having clear definitions for both substantial and final completion in your construction contract is an important and necessary early step in achieving successful project closeout.
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William E. Underwood, Jones Walker LLPMr. Underwood may be contacted at
wunderwood@joneswalker.com
Designers “Airpocalyspe” Creations
May 19, 2014 —
Beverley BevenFlorez-CDJ STAFFBlaine Brownell in Architect Magazine discussed how recently some designers have created items to deal with urban pollution, however, the creations themselves are more politically-charged than practical.
Brownell lists recent examples of architects and designers “perverse” creations: “Notable smog-inspired works include the Aegis Parka, a protective jacket created by Dutch design studio Nieuwe Heren; a palladium dichloride coat that changes color in the presence of carbon dioxide emissions and is designed by London-based artist Lauren Bowker; and R&Sie(n)’s ‘Dustyrelief’ building in Bangkok, designed to collect atmospheric dust via an electrostatically-charged facade.”
“Perhaps such proposals—and the disarming irony they conjure—will motivate the changes necessary to clean up our act,” Brownell concluded.
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Mass Timber Reduces Construction’s Carbon Footprint, But Introduces New Risk Scenarios
March 04, 2024 —
Michael Bruch & Franck Fumat - Allianz CommercialMass timber has the potential to be a critical building component for the cities of the near future given the need for the construction sector to reduce its reliance on concrete and steel to lower its Co2 emissions. However, as this market grows and mass timber buildings evolve to greater heights, the construction risk landscape will also be transformed, bringing risk management challenges for companies, according to the new Emerging Risk Trend Talk
report from Allianz Commercial.
“The emergence of mass timber as a sustainable construction alternative represents a significant opportunity for the building sector to reduce its carbon footprint while also satisfying a demand for a material that is more cost-efficient but as durable as steel and concrete,” says Michael Bruch, Global Head of Risk Advisory Services at Allianz Commercial. “However, in any industry, deployment of new materials or processes can result in new risk scenarios, potential defects, or unexpected safety consequences, as well as bringing benefits, and mass timber is no different. Given this market’s expected future growth, companies should do all they can to develop a greater understanding of their exposures including fire, water damage, repetitive loss scenarios and even termite infestation, and ensure they have robust loss prevention measures in place to combat these.”
The need for mass timber
The building and construction sector is among the largest contributors to Co2 emissions, accounting for over 34% of energy demand and around 37% of energy and process related Co2 emissions in
2021 [1]. Given emissions reduction is essential to meet climate change commitments around the world, the need for more sustainable solutions in the built environment has become increasingly important, driven by growing investor and consumer concerns, and legislation, regulation and reporting requirements evolving quickly in many jurisdictions around the world.
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Allianz Commercial
Did New York Zero Tolerance Campaign Improve Jobsite Safety?
December 13, 2021 —
Neil Flynn - Construction ExecutiveConstruction work is one of the most dangerous jobs in America, accounting for 19% of all workplace deaths in 2019. In New York City, that number is almost 50% higher, with construction accidents accounting for a quarter of all workplace deaths. One of the most positive developments in this area, despite the presence of COVID-19, has been the recent implementation of the “Zero Tolerance” campaign by the New York City’s Department of Buildings.
The goal of the DOB’s latest construction safety campaign was to reduce the number of building site injuries and fatalities by implementing a zero-tolerance standard. While it is too premature to measure the program’s efficiency, a
preliminary analysis of the first three months’ results appear to be nothing short of impressive.
Reprinted courtesy of
Neil Flynn, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Mr. Flynn may be contacted at
nf@plattalaw.com
Indemnity Clauses That Conflict with Oregon Indemnity Statute Can Remain Partially Valid and Enforceable
November 30, 2016 —
Masaki James Yamada – Ahlers & Cressman PLLCWhen the indemnity provision of a contract conflicts with ORS 30.140, it is voided to the extent that it conflicts with the statute, but no more. Such provisions can remain partially valid and enforceable.[i] In Montara Owner Assn., the owner brought claims against the contractor for construction defects and damage relating to the construction of 35 townhouses. Contractor then brought third-party claims against more than 20 subcontractors for breach of contract and indemnity. Before trial, contractor settled with all but one subcontractor. The subcontract contained an indemnity provision requiring subcontractor to indemnify contractor for losses arising out of subcontractor’s work, including losses caused in part by contractor’s own negligence.
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Masaki James Yamada, Ahlers & Cressman PLLCMr. Yamada may be contacted at
myamada@ac-lawyers.com
Construction Litigation Roundup: “Indeed, You Just Design ‘Em”
April 29, 2024 —
Daniel Lund III - LexologySeeking to be extracted from personal injury litigation initiated by a laborer on a project in New Orleans, an architect sued for negligence filed a motion for summary judgment.
The plaintiff had “testified in his deposition that after demolishing most of one of the side walls of the vault and a smaller section of the front wall, he was instructed to stand on top of the vault's concrete ceiling in order to demolish it with a hydraulic jackhammer.” One court noted that: “Shortly after beginning that task, the entire vault structure collapsed.” Claims against the architect included assertions of “failure to monitor and supervise the execution of the plans to ensure safety at the jobsite.”
The architect urged in support of its MSJ that it did not owe a duty to oversee, supervise, or maintain the construction site, or have any responsibility for the plaintiff’s safety. Summary judgment was granted to the architect by the trial court, and an appeal ensued, whereupon the appellate court reversed. That intermediate court found that potential intervening knowledge of the architect of a potentially unsafe demolition practice created an issue of material fact.
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Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com
Meet the Forum's In-House Counsel: ERIN CANNON-WELLS
June 26, 2023 —
Jessica Knox - The Dispute ResolverCompany: Keller North America, Inc.
Email: ecannon@keller-na.com
Website: https://www.keller-na.com/
Under Grad: University of Delaware (Bachelor of Civil Engineering 2000)
Grad School: The University of Texas (Master of Civil Engineering 2002)
Law School: Howard University (JD 2008)
States Where Company Operates/Does Business: Throughout the US and Canada
Q: Describe your background and the path you took to becoming in-house counsel.
A: I studied civil engineering in undergrad and finally found my "calling" when I took a construction course, prompting me to pursue a master's in construction engineering. I started my career at Turner, holding various engineering positions, the last of which introduced me to the "contracting" side of construction. I was inspired to go to law school (in hopes of becoming an in-house lawyer there). After law school, I joined BigLaw, but maintained my desire to practice construction law. I then jumped to a small construction practice group at a mid-size firm, and the mentoring and experience there was everything I could hope for (but for the looming business development and billable hour requirements). From there, I became the sole in-house counsel for a large cement manufacturer and was a true construction generalist. Now I am part of a great legal team for a leading geotechnical specialty contractor. My moves were strategic, and I'm pleased to say that this is the very career I went to law school to have.
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Jessica Knox, Stinson LLPMs. Knox may be contacted at
jessica.knox@stinson.com
Land Planners Not Held to Professional Standard of Care
October 10, 2013 —
Heather Anderson — Higgins, Hopkins, McLain & Roswell, LLC.Recently, the Colorado Court of Appeals indicated that there is no professional duty of care applicable to land planners. See Stan Clauson Associates, Inc. v. Coleman Brothers Constr., LLC, 297 P.3d 1042 (Colo. App. 2013). Stan Clauson Associates, Inc. (“SCA”) agreed to provide land planning services to Coleman Brothers Construction, LLC (“Coleman”) for property referred to as Crown Mountain in a letter and then verbally agreed to provide a development analysis for another property, located on Emma Road in Basalt, Colorado. Thereafter, SCA sent letters to the defendant concerning the possible subdivision and development of the Emma Road property.
Approximately two years later, SCA sued Coleman for breach of the verbal agreement concerning the Emma Road property. Coleman then asserted counterclaims against SCA for negligently providing inaccurate advice about whether the Emma Road property could be subdivided and developed, and that the county had denied the planned unit development sketch plan SCA prepared and submitted on behalf of Coleman. The district court granted SCA’s motion for summary judgment thereby concluding that the economic loss rule barred Coleman’s negligence counterclaims. The Court of Appeals agreed.
In its opinion, the Court of Appeals reiterated the economic loss rule espoused in the Colorado Supreme Court in the Town of Alma v. AZCO Constr., Inc., 10 P.3d 1256, 1264 (Colo. 2000) case. “Under the economic loss rule, ‘a party suffering only economic loss from the breach of an express or implied contractual duty may not assert a tort claim for such a breach absent an independent duty of care under tort law.’”
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Heather AndersonHeather Anderson can be contacted at
anderson@hhmrlaw.com