Capital Expenditures – Luis Gile's Blog

Project Bank Accounts – New Project Accounting Contractor’s will Hate but Will Protect them from Insolvency!

Using PBA's will require significant adjustments and all parties will need to rethink how they operate.

PBA's work like a Trust that holds funds from an Owner as payment to the general contractor.

There are only certain types of suppliers who have the training and legal obligation to look after the Owner's best interests.

The SEC's focus on these issues foretells of major changes for construction in the future.

You should bear that in mind and recognize that your payment is always a form of reimbursement.

Unit pricing tends to rise as the scale of the project reduces.

When your buying power is limited, joining forces with another organization may represent a win for all parties.

Rip and Tear clauses establish the Architect's liability to pay for costs that the Owner may incur.

The court found that Foster failed to “identify requirements and possible constraints" and "confirm key requirements and constraints”.

If you have influence over contract awards, you must hold yourself to the highest ethical standards.

Drivers that would compel private businesses to prioritize local resources.

This is not a case anyone would want to emulate. This is a case to be regarded as the perfect storm of what NOT to do in construction.