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HEADLINES ADDED: December 30, 2007
Mechanic's Lien Notice Language
In response to more questions regarding Mechanic's liens we have cut and pasted the standard notice of lien form lifted from the Maryland Annotated Code. Remember, this notice must be sent registered or certified mail, return receipt requested, to the Owner. It can also be personally delivered to the Owner. If notice cannot be accomplished by these means, it can be posted on the property.Notice to Owner or Owner's Agent of Intention to Claim a Lien ........................................................(Subcontractor) did work or furnished material for or about the building generally designated... Read More
Defective Specifications
A recent Federal Circuit case underscores a contractor's rights to equitable adjustment when the owner provides defective specifications. In this case, the contractor made a claim for a constructive change as a result of having to proceed under what it contended were omissions in the specifications. The Government took the position that since the specifications were defective the contractor should not have relied upon them. Citing to well established precedent, the trial court had expressed that"[w]hen the government provides a contractor with defective specifications, thegovernment is deemed to have... Read More
Secrets to Superior Safety
Secret number 1: There are no secrets... Read More
How Do We Learn? - A Primer
... Read More
Your Corporate Website Is Boring Applicants
... Read More
A Success Story - Reinventing The Educational Process
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Are you using the office "grapevine" to its fullest potential?
... Read More
Branding 101
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From sales pitch to trusted partnership
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Job Theft on a Construction Site
A contractor called recently with a question about what to do with a homeowner complaint that some of their liquor has been stolen (just the liquor - the bottle was left behind). He had two subs on the job site during the time when this “theft” took place, and that he had to deal with a customer that was behaving unusually. He asked several times when she bought the bottle of Old Grand Dad, but she never gave a direct answer. Which leads one to believe that the owner... Read More
Searchers vs. Planners
In the December Atlantic, Sarah Chayes tells the fascinating, frustrating story of her Afghan adventures in entrepreneurship--and the utter lack of interest she encountered from U.S. funders charged with aiding Afghan economic development.... Read More
Industry Insider’s Best of 2007
In 2007, I wrote 12 Industry Insider columns. In doing so, I articulated at least 12 controversial, humorous, bizarre, audacious or profound thoughts. ... Read More
Go Get Your Goals in ‘08
It’s a new year and 2008 is going to bring you what you want, I promise. How can I make that promise? Because I promise you are more likely to stick to your resolutions WITH A LITTLE HELP FROM YOUR FRIENDS. I just spent seven days in life-planning bootcamp that I put on for a group of my friends and I have all my goals clearly laid out. A complete first draft of my next book by June. Getting my blood pressure down to 130/70 without meds. Going to... Read More
Asia/Pacific Equipment Demand Expected To Exceed North American Demand by 2011
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New-home Sales Fall Nine Percent
New-home sales plummeted by nine percent in November from October to a seasonally adjusted annual rate of 647,000 according to a report released by the Department of Commerce and the Department of Housing and Urban Development on Friday.... Read More
Top Classroom Technologies for 2008
As teachers and students get geared up for the second half of the school year to start, systems integrators are reviewing last year’s sales figures and predicting what may be top technologies for classrooms in the coming year. Bob Berry, a Seattle-based sales executive for AV supplier Troxell Communications... Read More
1997 UBC / 2006 IBC Structural Comparison and Cross Reference
By 4012S06. ICC. Price: $45. Publish Date: 06/2006... Read More
Update Your Knowledge of Concrete and Framework Easy!
... Read More
Sir Norman Foster to Give Moscow World’s Largest Building
Moscow may soon be home to the world’s largest building, described as a city-within-a-city, and four times the area of the Pentagon. Dubbed ‘Crystal Island’, it will cover 27 million square feet and stand roughly 1500 feet tall, and comes with a price tag of $4 billion. Just what will this building contain? 3000 hotel rooms, 900 apartments, a 500 student international school, a museum, cinemas, theaters, a sports complex, and a plethora of shops. The idea is to have every desirable amenity within a comfortable, indoor walking distance. It will... Read More
Could Gains in Energy Efficiency Cause Increases in Energy Consumption?
I was browsing Reed’s market insights today when this piece on energy efficiency caught my eye. After doing a number of interviews with green building leaders and researching the topic, this article was especially thought provoking. It challenges the conventional wisdom behind many green building practices and policies. Conventional wisdom tells us that one way to decrease the carbon footprint of a building or building project is to increase its energy efficiency. In homes, for example, this translates into energy efficient appliances, the smallest possible HVAC systems, and energy-conscious windows (among... Read More
HEADLINES ADDED: December 27, 2007
The Pitfalls of Using Your Name as Your Company’s Name
Many construction companies are named after their founder, like “Smith Construction”, “Larry’s Plumbing”, and “Johnson Electric”. But companies that make use of surnames may have problems obtaining exclusive trademark rights in those names -- rights that the company could enforce against competitors that adopt confusingly similar names. This is a brief explanation of why you may want to rethink using your name as your company’s name.A company can obtain enforceable trademark rights without formally registering its trademark, so long as the company makes commercial, public use of the trademark.... Read More
A101 2007 Changes
The A101- 2007 provides a few significant changes from its 1997 counterpart. We will outline those that we believe are more than just stylistic. 1. On the cover page, the A101-2007 requires a more detailed description of the project.2. In Article 3, liquidated damages can be assessed for failing to achieve substantial completion on time. The A101-1997 referred only to completion3. Article 4 provides for the inclusion of any allowances in the Contract Sum.4. The dispute resolution provision is markedly different. It creates an Initial Decision Maker, with the... Read More
Important Changes to the 2007 A401 - AIA Standard Form of Agreement Between A Contractor and Subcontractor
The American Institute of Architects (“AIA”) revised its standard form contract documents this year, including the standard form agreement between a contractor and subcontractor.Published in October 2007, the changes to AIA A401-2007 contain large impacts to both general and subcontractors, some of which are summarized below: Subcontract Documents Under the new A401-2007 contract form, a contractor need only make available the Subcontract Documents to a subcontractor, where previously copies of these documents were furnished by the contractor. As such, a subcontractor must specifically request all Subcontract Documents from the... Read More
Mechanic’s Liens - The 15% Issue
A mechanic’s lien secures payment for labor or materials supplied by a subcontractor or general contractor in the improvement of real property, but not all buildings are subject to a mechanic’s lien. Unless the building is newly constructed, work done on a building to repair, rebuild, or improve an existing building must increase its value by 15%. If the work performed does not increase the value of the property by 15%, then Maryland will not permit the establishment of a mechanic’s lien.Bowie & Jensen represented a heating, ventilation and... Read More
Bid Protests and Appeals - Time for Filing
Maryland provides only a limited time for a contractor to file a bid protest and failure to abide by these time constraints will be fatal to all claims by the contractor. Further, Maryland provides a limited time for an appeal to the Maryland Board of Contract Appeals and contractors must be aware of these rigid time restrictions when considering protesting an unsuccessful bid or denial of any claim.If a contractor believes it has been aggrieved in connection with the solicitation or the award of a governmental construction contract in... Read More
The ‘Columbo Objection’: Recovering the Lost Sale
Many people feel that if you give any price concessions, they’ll just keep pushing you and won’t stop. When you’ve hit your limit, stop. It’s okay to give a little.... Read More
Marketing Lessons for the New Year
Does your year just happen, or do you make it happen?... Read More
Growing Pains or Growing Gains?
The devil is in the details when you build your company through acquisitions.... Read More
Blogging’s a Low-Cost, High Return Marketing Tool
Although small businesses with blogs are still a distinct minority, blogging can be a low-cost way to market and boost a small company’s brand. (Subscription required)... Read More
Trucktruth.com Launches Lift Truck Calculator
New online tool compares the costs of owning IC versus electric-powered lift trucks... Read More
What's IT Worth?
Most companies fail to report the true value of their software assets, according to a new study.... Read More
Look Who's Not Talking
Both company directors and senior managers place a premium on strategic planning. So what keeps them from collaborating on it?... Read More
Homeland Security's Tom Ridge
The first secretary of Homeland Security tells CFO what companies should fear most.... Read More
Process Improvement - The Second Most Important Thing
Any construction firm seeking a faster or more accurate business process must start at a reservoir of best practices. For a quicker achievement of its goal, a library of best practices allows a contractor to sort, discard and pare down dozens of ideas in a single day to the strongest ones which will help him or her reach schedule, financial, safety and quality goals. Once a good set of practices are destined for adoption, the next step is not so obvious. It is the concept of "discrete tasks go... Read More
Enforcing a Mechanic’s Lien
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Sales and use tax relief for contractors.
The Maryland sales and use tax will be increased from 5% to 6% on January 3, 2008; however, there is a limited exception for contractors and subcontractors who buy materials after January 3rd for incorporation into real property under a contract that was made before January 3rd. In other words, contractors who entered into contracts in 2007 can buy materials for those projects at the 5% sales tax rate even after the 6% rate generally goes into effect. The Comptroller's office has created a certificate that contractors can submit... Read More
Hammering Away at Construction Hazards
As the construction season heats up, make sure your workers won't get nailed by the most common causes of injuries.... Read More
HEADLINES ADDED: December 26, 2007
Prevailing Wages on Government Contracts
Certain federal laws require contractors and subcontractors to pay some employees wages in excess of minimum wage. Most notably, the Davis-Bacon Act (“DBA”) and the McNamara-O'Hara Service Contract Act (“SCA”) impose wage requirements related to nearly all construction and service contracts with the U.S. or District of Columbia governments.The DBA requires contractors to pay laborers and mechanics prevailing wages as determined and published by the Department of Labor (“DOL”). The Act applies to contracts with the U.S. government and District of Columbia for the construction, alteration, or repair of... Read More
Protecting Yourself from an Insolvent Sub-Contractor’s Bonding Company
In a recent 1st Circuit case, a surety bonding company sued a contractor and its principals for indemnification when the surety bonding company paid claims on a bond issued to the contractor for a project involving construction of a parking lot. Although the contractor had required its subcontractor, which performed the work on the parking lot, to provide a bond for the benefit of the contractor, the bonding company that provided the subcontractor’s bond became insolvent and could not pay the contractor’s claim. This triggered protections under the Maine... Read More
"The Bramble Rule:" Md. Contract law Takes a Foothold Nationally
In 2005, the Maryland Court of Appeals, in a case captioned National Union Fire Insurance Company v. Bramble, released a decision that the 45 day response time found in the 1984 AIA A312, as well as other payment bonds, requires that the surety include in its response letter (1) the amounts disputed and (2) the basis for challenging the amount in dispute. The surety company's failure to include other reasons for challenging the amounts resulted in a waiver of those defenses. In 2006, the United Stated District Court for... Read More
Public Agencies Face New Restrictions in Contracting with Design Professionals
With the enactment of AB 573 (Wolk), many California public agencies face new restrictions on the indemnity protections they can require when engaging design professionals. The new law applies to contracts (or amendments to existing contracts) entered into after January 1, 2007 with (1) licensed architects; (2) licensed landscape architects; (3) registered professional engineers; and (4) licensed professional land surveyors. The new law, which adds Section 2782.8 to the California Civil Code, provides that agreements between most public agencies and the listed types of design professionals may only require... Read More
Justifying Training
Corporate management has a responsibility to invest company funds where they will generate a positive return. A decision to invest in equipment that will improve production and lower operating costs can often be justified with statistics. Establishing a budget for employee training, however, may be more difficult to justify.... Read More
Closing the Books on Boston's 'Big Dig'
Boston's massive highway and infrastructure project, the much-delayed, much-criticized "Big Dig," will officially be finished as 2007 comes to a close. Over the years, the price tag for the project soared from $2.6 billion to $14.8 billion. (Audio)... Read More
Can Green Homes be Mass Produced?
The Fast Interview: Architect Michelle Kaufmann on finding an alternative to endless subdivisions of McMansions.... Read More
Hitting the Wall at Work?
The Fast Interview: Timothy Butler on how to break the impasse and re-charge your career.... Read More
Mastering the Flow
CFO's new Cash Masters Scorecard shows which companies are best at turning sales dollars into cash flow.... Read More
National Economic Slowdown Hits Regions Differently
New England, the Gulf Coast and the Northwest are weathering the slowdown in U.S. economic growth with only a minimal impact on their regional economies while parts of the Midwest have slipped into recession and the pace of growth in the rest of the country has slowed significantly.... Read More
Be a Problem Solver For Your Customers
How do you market yourself to convey that you deliver impeccable service in order to differentiate yourself from lesser service providers? ... Read More
5 Resolutions For a More Profitable 2008
As you look cheerfully toward New Year’s Day, consider these professional New Year’s resolutions. They may help your custom retail business flourish in 2008 and beyond.... Read More
11 Ways to Improve Your Viral Marketing Skills
With the following tips, learn how to differentiate your services by becoming a consultative proponent for your client.... Read More
Lean & 5S's in Construction - Dec 07, #29
What would Santa be like if he went Lean? – Answer is at the end of this email. ****************** How to Lead Lean Lou English shares his views about how leadership must understanding Lean and be convinced of its value enough: “To pay attention to it through goals, measures, problem solving and seeing it working every day. To learn about it without trivial debate or challenge, read more... Read More
Do you need a pre-audit of your contracting practices?
... Read More
HEADLINES ADDED: December 25, 2007
UPDATED - Maryland's New Prevailing Wage Law
Maryland’s new living wage law becomes effective October 1, 2007. The law applies to all contractors or subcontractors that have state contracts for services valued at $100,000 or more. Nonprofits are exempt. Employers with fewer than 10 employees are also exempt on contracts that do not exceed $500,000. All contractors covered by the new legislation must post a notice advising their employees of their rights under the new law and the name, address, and telephone number for the Commissioner of Labor and Industry. Failure to post the notice can... Read More
The Importance of Lien Releases
A question that comes up often is whether an Owner can be forced to pay twice for the same work. In the context of commercial construction, the answer is "yes," if the Owner does not get the appropriate lien releases. A Petition for a Mechanic's Lien allows a subcontractor to collect for unpaid labor, materials and equipment from the Owner when the subcontractor has not been paid by the general contractor. Consequently, if the Owner has paid the general contractor, but the general contractor has squandered the money or... Read More
Successful Resolution for General Contractor
Michael W. Siri, an associate at Bowie & Jensen, LLC, successfully negotiated payment to a general contractor by the owner for two separate commercial buildings. Mr. Siri was able to secure payment prior to the filing of a mechanic's lien or any other cause of action. As a result of the payments obtained by the owner, the general contractor was able to resolve underlying invoices owed to several subcontractors.... Read More
Restrictions on State of California's ability to contract with private engineering firms struck down by California Supreme Court
On November 5, 2007, the California Supreme Court held that the State of California could not enter into a memorandum of understanding with an engineering union which restricted the State from hiring and retaining private engineering firms where such restrictions were barred by a recent amendment to the state constitution. (See Consulting Engineers and Land Surveyors of California, Inc. v. Professional Engineers in California Government, 2007 Cal. LEXIS 12680.) In November 2000, California’s voters approved Proposition 35, adding art. XXII to the state constitution. Art. XXII allowed the state... Read More
Contracting Training
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Planning for Success
Joshua Coleman, PhD, a San Francisco psychologist and author said: “To be successful, you have to be decisive about what you want in your life and career. You need to know when to prioritize your own needs.” We are coming up on the end of the year. Begin planning for your “Yearly Planning Time” that will occur between November 15 and December 31. That is only 2 weeks away. During that period you need to review the current year to see what went right and what went wrong. With... Read More
Exposed: Five Marketing Myths Revealed
These small efforts are to make sure your customers never open the Yellow Pages again.... Read More
Contractor Insights
For this edition of RS&SD Contractor Insights, Contracting Business spoke with Bill Almquist, president and owner of Almcoe Refrigeration Company, Dallas, TX.... Read More
"The Process" for smaller projects
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"The Process" (2)
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"The process"
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North Carolina General Assembly Strives for Efficiency in 2007
As we reflect on the legislation enacted by the North Carolina General Assembly that impacts the construction industry in 2007, the goal of the General Assembly for 2007 can be summarized in a single word: efficiency. The need for energy efficient buildings, efficient cost practices, and efficient review of construction plans that will allow outdated buildings to be renovated and many needed new public buildings to be built more rapidly appears to be the primary objective for 2007. The following is a brief summary of the laws that demonstrate... Read More
Design-Build Bills Signed into Law
Design-Build Bills Signed into Law... Read More
Best of 2007: Technology
If you wanted to know the implications of XBRL, what people were saying about AS5, why the financial aspects of Second Life should be regulated, or how to make better use of spreadsheets, this was the year for you.... Read More
Best of 2007: Accounting
In a year that saw a huge push toward a single set of global accounting rules and the demise of an auditing standard, corporate financial executives also got a glimpse at the future of financial statements — and it's all about fair value.... Read More
DOT Approves Nearly $1.2 Billion for Capital Beltway Construction
U.S. Secretary of Transportation Mary E. Peters announced today the release of nearly $1.2 billion from the department in the form of a direct loan and tax-exempt private-activity bonds to jump start the construction of high-technology express lanes on the Capital Beltway in Virginia.... Read More
Veridian Homes: Professional Builder’s Builder of the Year 2008
Veridian Homes adapts the strategies of today’s most successful companies. Professional Builder names this homebuilder Builder of the Year 2008. See why.... Read More
17 Ways to Improve Your Efficiency
Following are 17 suggestions to companies for trimming budgets, saving time, avoiding service calls and improving efficiency during a lean time.... Read More
Is Your Company Prepared For Your Absence?
If you had an unexpected accident or suddenly fell seriously ill, how prepared is your company to operate without you for any extended period of time? ... Read More
Renewing The Rent Vs. Buy Debate
Visit nearly any job site and you'll see plenty of rental operation decals on a variety of equipment. The construction rental business is booming — nearly everyone agrees. Or is it? Three professionals who know both the rental and sales markets have different, and similar, viewpoints about the past, present and future of the rent vs.... Read More
Creating A "Cycle Of Success"
Successful construction leaders are made, not born. That is the concept behind the Iowa State University and the Master Builders of Iowa (ISU/MBI) "Project Managers and Project Supervisors Academy." The academy is an extensive, highly interactive learning experience that develops the skills of project managers and project supervisors in the construction industry.... Read More
Ohio Cities Going Green
A river runs through it ... through the city of Findlay, Ohio, that is. Named for Hancock County's first known settler, the Blanchard River has long played a vital role in this community's history and well-being. Findlay owns its inception to the Blanchard, when during the War of 1812, Col. James Findlay, while moving the Ohio Frontier Army from Dayton to Detroit, built a stockade on the site t...... Read More
Pursuing Training And Education
Recruiting, training, re-training, and continuing education continue to be prime concerns of the construction industry. For proof, just ask the more than 100 chapter and member training and education directors who attended the first annual Associated General Contractors of America Training & Development Conference in Dallas in late October.... Read More
Overhead Question and Answer
Question: Hello Matt; After reading your book, I have a question regarding dual overhead percentage and Total Mark-up percentages. My mark-up percentage calculates to 35%. For my dual overhead calculations I am using a 8% profit, 7% material/sub-contractor & 20% Labor and equipment. This totals to 35%. The thing that I have noticed is that if I take my raw labor/equipment, materials/sub-contract costs, & take them x 1.35 this total number is higher than if I accumulate the percentages separately on my spreadsheet. Is my process correct? Is this... Read More
More Project Efficiency Through Technology
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Critical Audit of Port of Seattle Construction Management
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Christmas Cheer for Construction Funding
The availability of construction funding remains fragile and is a major threat to construction starts and spending in 2008. Commercial developers report increasing difficulty obtaining construction financing with the full impact of this yet to seen in construction starts. The fixed rate subprime and jumbo residential mortgage markets are still short of funds and continue to ration credit with premium mortgage rates and tighter approval standards.... Read More
Role of trade unions still misunderstood by general public
According to the latest opinion poll on the subject, the role of trade unions in the civil society is as much misunderstood as ever by the great unwashed.... Read More
10 Reasons Housing Will Begin Its Recovery in 2008
On October 31st, the Laguna Niguel Real Estate Blog posted a list of 10 Reasons the Housing Market Will Begin to Recover in 2008. The list was originally in an email sent by Countrywide lender Kevin Budde. After more than a month and a half, I decided to go back and see if any progress has been made. Here is the list (the bold sections are from Mr. Budde, and the italics are mine): “1. The Federal Open Market Committee (FOMC) Will Continue to Lower Interest Rates” The Fed did... Read More
HEADLINES ADDED: December 20, 2007
AIA California Council issues a working definition of "Integrated Project Delivery"
At the AIA National Convention in San Antonio on May 2, the AIA California Council issued an intriguing working definition of "Integrated Project Delivery." The goal of Integrated Project Delivery is to approach construction projects in a more collaborative way, taking advantage of technological tools such as Building Information Modeling. Click here to view the document published by the AIACC. Integrated Project Delivery calls for earlier and on-going cooperation among all stakeholders on a construction project, including the owner, architect, contractor, subcontractors, suppliers, equipment manufacturers, system integrators and lenders. One key of... Read More
Project Delivery Systems
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Not All Jobs Are Created Equal
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Who clicks on those (internet) ads?
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Reading for Education
You have heard me preach about the value of reading. Brian Tracy sent out a note recently that included the following: Earl Nightingale said many years ago that one hour per day of study in your chosen field was all it takes. One hour per day of study will put you at the top of your field within three years. Within five years you’ll be a national authority. In seven years, you can be one of the best people in the world at what you do. If you read... Read More
Best of 2007: Smaller Businesses
Was it a year of regulatory concessions for smaller companies or were their demands for scalable, less-costly rules ignored? Turns out, it was a little of both.... Read More
Biggie Smalls
Small builders used to be overlooked by builder software companies, but that's changed as Constellation HomeBuilder Systems seeks to revive BuildSoft; BuildLinks and Corecon keep making improvements; and products such as the Web-based cost-estimating system 6x6 Builder, by 6x6-Builder.... Read More
Cautious Optimism for the Construction Industry in Maryland, North Carolina, South Carolina, D.C. and Virginia for 2008
The industry is faring well in Construction’s region, and this trend is expected to continue through 2008. In fact, there appears to be no shortage of work in the region, and a cautious optimism prevails as we look ahead to next year.... Read More
Slow Growth in Construction for New York, Pennsylvania, New Jersey and Delaware in 2008
Mention the “R” word, and it can run shivers up the backs of contractors running on tight profit margins. But according to at least one organization that knows its way well around the construction forecasting business, 2008 looks like a year of slow but certain growth.... Read More
2008 A Year of Steady Growth in the Midsouth
Road and bridge activity in the midsouth coupled with economic development projects currently under construction makes 2008 a year of steady growth for the Construction News territory.... Read More
Construction Professionals in the Six-State Digest Region Optimistic About 2008 Prospects
Reports indicate that the nation’s economy should ease somewhat in 2008, with indicators pointing to a modest decline in nonresidential construction. But don’t tell that to developers, contractors and equipment distributors in the six-state Digest region.... Read More
NAHB Forecast: 2008 Down, 2009 Up
I just got off of the NAHB year-end economic forecast teleconference and I guess you could call it a mixed bag of O-K to Oh-my-God. For remodeli...... Read More
2008 Construction Outlook for the Southeast
How’s the outlook for the southeast? Last year we noted that “it all starts with homebuilding.” This time last year the outlook for home construction was generally doing well or, at worst, starting to cool in some areas. But by late 2007 “cool” had moved closer to “cold” in some areas.... Read More
2008 Construction Forecast for the State of Michigan
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Growth Slow for Housing but Rising for Non-Residential and Non-Building Construction in New England for 2008
The New England economy, as measured by its gross regional product, will experience slower growth than the United States over the next five years according to a report issued at the recent Fall Conference held in Boston by the New England Economic Partnership (NEEP), a nonprofit economic forecasting organization that has been tracking the regional economy for more than 35 years.... Read More
Construction Boom Continues for Pacific Northwest in 2008
If the nation truly is heading into a recession in 2008, why does it feel like the boom is continuing for the heavy construction industry in the Pacific Northwest? Answer: Because the boom is continuing, at least for the time being, across much of the region.... Read More
2008 Construction Forecast for Mountain America
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2008 Construction Outlook for Texas
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Construction Outlook for Wisconsin and Upper Michigan 2008
Overall, construction work in Wisconsin should be up a bit in 2008. Reed Construction Data (RCD), publisher of Western Builder, projects the total value of construction in the state to reach $5.4 billion, up 10.3 percent from $4.9 billion in 2007.... Read More
Midwest Construction Forecast for 2008
For years now, Associated Construction Publications (ACP), the publisher of Midwest Contractor, has offered a Consolidated Forecast of the upcoming year in its last issue of December. Using information gathered by Reed Business Information, trade association member surveys and discussions with construction industry leaders, ACP provides a snapshot of what you can expect in 2008.... Read More
Foreclosure Activity Down 10 Percent in November
In what has been a tumultuous year for foreclosures nationwide, there finally is some good news-even if it ends up being short-lived.... Read More
Land Prices Hit Five-Year Low in Southern California
Prices for finished lots in the Antelope Valley and Inland Empire areas of southern California are now significantly below what developers and owners were asking two years ago, and in some markets prices have fallen to levels not seen since 2002, according to a report released this week.... Read More
Legal Aspects of Public Purchasing - Training
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Basics of Public Works Contract Administration - Training
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Benefits of Tire Retread
Harvey Brodsky, Managing Director of the Tire Retread & Repair Information Bureau, explains which tires in an equipment fleet are able to be retread (hint: all of them) and how implementing a retread system can save contractors large amounts of money.... Read More
HEADLINES ADDED: December 19, 2007
Authority to Issue Changes on Govt. Contracts
The Federal Circuit released an opinion that should serve as a cautionary tale on some of the perils of contracting with the Federal Govt. This case arose out of claims for equitable adjustment on a renovation project at the Great Lakes Naval Research Center.The Federal Circuit reversed many of the findings in favor of the General Contractor on the basis that the Project Manager for the Navy did not have actual authority to approve the changes claimed by the General Contractor. The prime contract incorporated by reference many of... Read More
Proposed 2007 AIA Contract Changes
Important Potential Changes to the 2007 AIA Contract Affecting Contractors and SubcontractorsThe American Institute of Architects (“AIA”) is preparing revisions to key contract documents that have remained unchanged since 1997. The changes are expected to be published in October of 2007, and the anticipated changes to AIA A201-2007 contain large impacts to both general and subcontractors, some of which are summarized below: Payment ProceduresUnder the new A201-2007, contractors must pay subcontractors “no later than seven days after receipt of payment from Owner” (the current A201-1997 requires the contractor to... Read More
Timing For Filing a Mechanics’ Lien
Timing is an important aspect when a contractor or sub-contractor wants to obtain a mechanics’ lien on a property to secure the owner’s unpaid obligation.Based on a number of questions from readers regarding the time for filing a mechanics’ lien, we wanted to clarify the time frame in which a party must act to secure payment for labor or materials supplied by a contractor or general contractor in the improvement of real property.Contractors must file a petition to enforce a mechanics’ lien within 180 days from the last day... Read More
2007 Legislation Affecting the Construction Industry
New laws concerning the construction industry will go into effect in 2007, some of which are previewed below. These laws encompass a wide variety of issues including indemnification of design professionals, the ability of architects to practice as limited liability partnerships, “green” building construction, expansion of design-build procurement, revocation and suspension of contractors’ licenses, execution of public university contracts, and regulation of the conduct of architects. AB 573: Indemnity of Design Professionals Assembly Bill 573 limits public agencies’ ability to obtain contractual indemnification from design professionals. The bill requires that all indemnity... Read More
Court denies contractor relief for claims against County of Sacramento where claim filing requirements were not followed
The California Court of Appeal recently entered a decision reinforcing the importance of a contractor's compliance with the applicable code provisions when filing claims and bringing causes of action against public entities in public works projects.In Westcon Construction Corporation v. County of Sacramento, (2007) 152 Cal. App. 4th 183, the County of Sacramento awarded Westcon a contract to construct a security fence in August of 2000. During construction, the parties encountered problems and Westcon requested extensions on the completion date and additional compensation. A notice of completion was recorded... Read More
New comprehensive guide for Integrated Project Delivery published
Earlier this month, the American Institute of Architects California Council ("AIACC") and the American Institute of Architects ("AIA") jointly published a comprehensive new guide to Integrated Project Delivery methods. The document is entitled "Integrated Project Delivery: A Guide," and can be downloaded here. The Guide marks an exciting step forward in the development of Integrated Project Delivery concepts and making IPD a viable alternative for the construction industry. The Guide is approximately 57 pages long and is divided into seven chapters. It begins with an updated definition: Integrated Project Delivery (IPD) is a... Read More
Governor Schwarzenegger Announces Ambitious Plan to Foster Public-Private Partnerships
Governor Schwarzenegger recently announced a plan to promote public-private partnerships in order to meet California’s long-term infrastructure needs. (See Los Angeles Times article.) Public-private partnerships are contractual agreements which are formed between public agencies and one or more private companies whereby the private company finances, builds and manages public facilities for a specified period of time.Public facilities which could benefit from such public-private partnerships include schools, roads, ports, treatment plants and hospitals. Under the terms of the agreement, the private company either rents the newly constructed facility back to the government... Read More
Third Circuit Court of Appeals holds that state's ability to contract for private architectural and engineering services mandated by California constitution
On June 13th, in Consulting Engineers and Land Surveyors of California, Inc. v. Professional Engineers in California Government, (2006) 2006 Cal. App. LEXIS 874, the Third District Court of Appeal struck down provisions of a union agreement between the state and civil service engineers limiting the state’s right to contract with private engineers, holding that the provisions conflict with Proposition 35 and are unconstitutional.The Court characterized the dispute “as another round in a long-standing battle by state employees to prevent the State of California from contracting out to private... Read More
MBE, WBE, MWBE, DBE
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Sales Question for a Residential Construction Company
There has been some discussion in trade publications of late whether you should take a one-legged call. That is the call where one or the other of a couple won’t or can’t be at the appointment. Many companies staunchly declare they will not set such a lead. OK, gang. This type of situation is similar to many that we cover in the “Opportunities” section of our book Profitable Sales, A Contractor’s Guide. Let’s enhance our status as the contractor of choice, one that will help the owner above and... Read More
Google Knows How Late Your Flight Is Running
Google has announced a flight tracking service that provides up-to-date information for those flying over the Christmas/ New Year break.... Read More
Creatling Opportunities to Build Diversity and Competence
A four-week pre-apprenticeship training program at Baton Rouge's Louisiana Technical College turns out craftwork candidates that smash the barriers of gender, race and age.... Read More
California Construction Forecast for 2008
It may not become the “perfect storm” but three “bad weather fronts” are headed toward California’s construction industry in 2008 and beyond. Bad enough to go into storm protection mode:... Read More
Some Growth Showing in Construction for the Upper Midwest in 2008
The Upper Midwest is showing some growth in commercial and industrial construction even as residential construction continues to decline across the region and in the United States. Minnesota’s budget for roads and transportation was on the increase until August 1 when the I-35W bridge collapsed.... Read More
New law limits design professionals' indemnity obligations to public agencies
The Governor signed a new law today which limits a public agency's ability to impose indemnity obligations on design professionals. AB 573 (Wolk) creates a new Civil Code section 2782.8 which makes indemnity clauses imposed by public agencies on design professionals (including architects, landscape architects, engineers and land surveyors) unenforceable except to the extent that they are based on the negligence, recklessness or willful misconduct of the design professional. Click here to see the text of the bill. Design professionals will obviously find this to be welcome news. It may also clarify an issue which... Read More
The Genzyme Center: the future of green building?
In response to our last post regarding the green building revolution, one of our readers sent me a link to a very interesting blog article regarding the Genzyme Center in Cambridge, Massachusetts. The Genzyme Center is an office building for approximately 900 employees which received the highest LEEDS (Leadership in Energy and Environmental Design) rating of Platinum. Some of its most impressive features include an open air atrium which serves as both a return air duct and light shaft, which allows 75% of the employees being able to work in... Read More
Now Online - Bidder Responsibility Guidelines
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Construction Defects Seminar
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Tools to Reduce Change Orders
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More on Bidder Responsibility
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The Five Don'ts of Sales Presenting
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The advantage of returning calls rapidly
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Generate Leads
If you are a general contractor, talk with all your subs about the work they are doing away from your jobs. If they are on another job and have demolition to get their part of a job done, who goes back to do the repairs? It should be you. Ask your subs to hand out your business card and flyer to all their clients, letting them know you can help put their homes back together after the specialty work has been done. Even if it’s a little job, the... Read More
Independent Contractors vs. Big Box Stores
An article in California Contractor magazine (October 2007, Page 3) reviewed a report from Consumer Reports that said “Roughly 40% of home owners experienced problems with their jobs when they went through Home Depot or Lowe’s to have remodeling or service work done.” Compare that to less than 30% of the homeowner’s who had their work done by independent contractors. Consumer Reports compiled this data from reports on over 13,000 jobs completed. My question is “Why is that surprising?” The big stores don’t approach the jobs the same way... Read More
Recruiting Today For Tomorrow's Work Force
On any list of industries, construction is undoubtedly near the top when it comes to the opportunities for developing satisfying and rewarding careers. Recruiting, training and retraining of workers should not be difficult — but the reality is that work force recruitment is one of the greatest challenges facing the construction industry today.... Read More
Keep Your Customers — They're Worth It
Always remember, your company’s current customers are the absolute No. 1 source of your future sales. When you lose customers, you lose all of their future business and all of their referrals to your competition. When you keep customers, you keep that pool of sales for yourself.... Read More
Business-Plan Contests Become "American Idol Meets Trump"
11 DEC 2007 from the Wall Street Journal | Read the full story» Business-plan competitions, long an academic ritual to help business-school students develop ideas and pitch investors, are becoming an increasingly popular way for business owners and would-be entrepreneurs to raise extra cash while honing their business strategy. Many of the newest contests aren't hosted by colleges, but rather by product makers and Web sites courting small-business owners and by investment firms or nonprofits trying to spur economic activity in a particular region or industry. (Subscription required)... Read More
Ownership: The Ultimate Motivator
Encouraging employees to take ownership of their work will result in better customer service and a stronger company.... Read More
Fortune's 101 Dumbest Business Moments of 2007
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Wells Fargo Construction Industry Forecast 2008
In its 32nd year of publication, the 2008 Construction Industry Forecast presented by Wells Fargo Construction is the nation’s premier, forward-looking survey of the North American construction industry.... Read More
U.S. Construction Outlook 2008-2009
The outlook for spending in the U.S. economy has deteriorated measurably in just the last few weeks, dragging the construction outlook down as well. The collapse of the sub-prime mortgage market has been weakening the economic outlook for several months, but the extent of the spillover into the broader economy is wider and more persistent than first anticipated.... Read More
Gov. Schwarzenegger Set to Declare Fiscal Emergency
With California facing a budget deficit of up to $14 billion, a shortfall caused largely by the subprime mortgage meltdown and subsequent housing slump, home builders in the state want to help the legislature get the housing industry moving again.... Read More
Damage Claims Strike Out at Safeco Field Project
CDS and the Seattle Mariners learned the value of recording the pre-existing condition of a job site after the Safeco Field project was completed in 1999. When Ken Griffey Jr. officially broke ground for the new Seattle Mariners baseball stadium in March of 1997, only a select few people were aware that CDS had actually begun the first preparatory operations for the project several weeks earlier. When the Washington State Major League Baseball Public Facilities District hired CDS to perform Construction Verification during construction of the stadium they specified... Read More
Economists forecast strong growth in U.S. non-residential construction for 2008
The non-residential construction sector in the U.S. will experience strong growth in 2008, despite the heavy drag coming from the decline of the residential construction market, says a panel of construction economists south of the border.... Read More
The Holidays: A Great Time For Jobseeking!
Most people believe the myth that the holidays are a bad time to be looking for a job. Tradition posits the time between Thanksgiving and New Years as a ‘no job seeking zone,’ a time when HR departments are not seriously considering candidates, and very few people end up getting jobs. This is just simply not the case. In fact, the holiday season is one of the best times to renew your job search efforts. For starters, many people believe the traditional view and take a break from jobseeking. ... Read More
Rework Ruins JobSite Morale
There are few management decision that can crush the morale on a job site more than excessive major rework orders. I’ve sat in too many management meetings where major demo/rebuild changes were discussed without any consideration given to communicating the reasons for the change to the responsible work crews. In these instances management focuses on the economic and design considerations of the finished product without sharing that information with the workers. The folks on the ground are left to interpret their own reasons for the change: Management doesn’t value... Read More
HEADLINES ADDED: December 18, 2007
Insurance Documentation
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Payment and Performance Bonds
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Small Jobs in Construction
After publishing our 5 newsletters on “How To Get Your Phone To Ring”, I have heard from any number of contractors that tell me they are focusing on small jobs. Those small jobs are turning into additional calls asking for work to be done on a larger scale. So, small jobs = large jobs. When the market is adjusting, as it is now, don’t get to hung up on the idea of “We don’t do small jobs.” Put your ego in your pocket and leave it there. Those small... Read More
Hot Jobs with potential - Architect
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The press release and the website designer
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An idea from South Africa
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Acquiring Minds Want to Know
New software and services help buyers assess the IT systems of potential takeover targets.... Read More
DOL Proposes Rules to Update Apprenticeship System
The U.S. Department of Labor recently announced proposed rules to align the national apprenticeship system with a more flexible and user-friendly approach for apprentices and employers, necessary in the 21st century global economy..... Read More
Four Injured in Yet Another Las Vegas Construction Collapse
Las Vegas Strip's grim streak of construction accidents continued on Dec. 10 when four workers fell 30 ft from a retaining wall at the $2.9-billion, 3,889-room Fontainebleau Resort Hotel.... Read More
Future Construction Leaders Of New York State
When Lew Markle of Ciminelli-Cowper in Buffalo retired as president of the GBC in 1998, he had one more important project to complete. He wanted to introduce the next era of future construction leaders in New York state to the mysteries of the construction industry through the GBC and to help them form a better understanding of the overall challenges to managing a successful construction company.... Read More
Challenged Employees Are Happy Employees
One of the greatest challenges the construction industry faces today is labor and training. The average age of a competent technician is mid-forties, and is inching towards retirement. Some also say that a lack of training in new recruits can cause a need for extra body count on job sites to make up for the lack of skill and experience.... Read More
Training Northwest Construction Workers
Addressing the growing concern about keeping up with the growing demand for construction workers in the Northwest involves more than simply recruiting warm bodies to fill the ranks. New people entering the field are useless to contractors until they gain the skills needed to do the work, and that's where apprenticeships come in.... Read More
Buy, Rent Or Lease?
For many contractors, shopping for construction equipment can transform them into business managers. Do they rent, lease, buy, or borrow? They may know the kind of equipment they want, but after looking at a fleet, they may change their minds because of price, technology, repairs, and the ease in which they can or can't obtain that one piece of equipment they need.... Read More
Training Retains Employees
As the construction industry attempts to hire and keep qualified employees, more and more employers and organizations are providing training to keep employees up to date with the industry and the technologies. People who want to enter construction and employees are searching for training as one method to get into the field and advance their positions.... Read More
For California Veterans
Two press releases and some website visits produced the following information to help California military veterans find careers in construction ... Helmets to Hardhats Comes to California! Helmets to Hardhats (www.helmetstohardhats.org), a new program of the Building and Construction Trades Department (www.... Read More
5 Ways to Prepare Your Company for Your Absence
Here are five ways a business owner can help him or herself protect against the effects of long-term absence.... Read More
Should You Join a Buying Group?
If you run a custom-only boutique or hybrid custom retailer, at some point you’ve considered the pros and cons of buying your products direct from the manufacturer or from a distributor. But have you considered a buying group?... Read More
Electrical Change Order Cost Data 2008
By Means. Means, R. S.. Price: $149.95. Publish Date: 11/2007... Read More
Construction Claims Training
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Nature of Lien Claim Before and After Perfection
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HEADLINES ADDED: December 16, 2007
New bill expands design-build authority for transit operators
On September 14, 2006, the Governor signed AB 372 expanding design-build authority for transit operators by revising Public Contract Code sections 20209.5, 20209.7 and 20209.14. Transit operators interested in utilizing the design-build authority for future projects will welcome the useful changes, which include the following: • the dollar threshold for “capital maintenance or capacity-enhancing rail projects” was reduced from $50,000,000 to $25,000,000; • the dollar threshold for all other projects was reduced from $10,000,000 to $2,500,000 (this matches the design-build authority for counties under Public Contract Code section 20133); • design-build... Read More
Senate Bill 1359 Addresses Safety of Construction Work Near Underground Pipelines
In response to a tragic explosion during excavation work near downtown Walnut Creek in November 2004, State Senator Tom Torlakson introduced Senate Bill 1359 to make construction work around underground pipelines safer. The bill went into effect on January 1, 2007.It imposes new obligations on parties involved in construction projects that require excavation near underground pipelines. The Walnut Creek accident was caused when a high pressure fuel line was struck by a backhoe during work on a new water main for the East Bay Municipal Utility District. Five workers were killed... Read More
APWA Forum: Going Green - Understanding the Complexities
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Hot Jobs with potential - Construction Estimator
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Webinars for Construction Business Owners
We held a webinar earlier this month on “Avoiding Business Blunders that Cost You Revenue” with Dan Baumann who runs Chief Experts. Dan’s web site is all about teaching contractors, designers, architects and others how to use the Chief Architect CAD software program. About 60 folks signed up for the webinar. Thank you to those who attended, it was great talking to you. What a great bunch of folks. Along with business, we had some laughs. The webinar ran about 1-1/2 hours, and we had an excellent Q &... Read More