Material volatility coupled with ever increasing labor costs, have made navigating the current market extremely difficult.
Extending payment terms is not without consequence and we must be informed on these risks in order to make a sound decision.
The following content was originally published July 2021 on IBM’s Category Newsletter. The Post-COVID Office – Our New Normal By Olivia L’Heureux Category Manager – Facilities With light at the end of the quarantine, Companies are preparing to bring worker’s back to the office. Offices are being reconfigured to promote new safety protocols and make…
As we continue our recovery from the impacts of the pandemic, inflation rates across the globe are on the rise.
Recently, I was on a webinar hosted by the American Institute of Architects. The discussion topic was about how to improve relationships between Architects and Contractors. I expected a lively discussion about scope of work and maybe some dialogue about design-build versus design-bid-build. The panelists included an Architect, a Developer, and a General…
General Contractor should not rely on the Owner’s contract to define the terms and obligations between the Contractor and his subcontractors. Rather, the GC should specifically state any and all of their sub-contractor terms (including payment obligations) independently of the Owner’s obligations to the GC. The Contractor should adhere to those terms independent of what may or may not be happening between the Contractor and the Owner.
Typically I try to announce speaking engagements in advance, but as you know, I’ve been a little off from my normal routines lately.
Regardless, I recently participate in a virtual event hosted by Worldwide Business Research (WBR) creators of the ProcureCon series.
The event was hosted and moderated by Ryan Kulp (Program Director for ProcureCon Facilities). The three hour event included panel discussions, presentations, and fireside chats with 9 leaders in Facilities Procurement.
The segment I participated in was a fireside chat between Ryan, myself and my friend and colleague Michael Beauregard.
In an article posted on Lexology by the law firm of Gordon Rees Scully Mansukhani, Brenda Radmacher a partner and construction law expert writes about the new jobsite safety measures that Companies will have to observe in light of COVID-19.
Radmacher does a great job of identifying the new norms, both on and off the jobsite, Workers will need to observe in order to avoid spreading the disease.
Some of these new norms are common widespread recommendations such as washing hands and observing social distancing, but some are very specific to construction and some are likely to impact costs and schedules.
I recommend reading Radmacher’s article, but I wanted to address a few specific recommendations.
Ever since the CoronaVirus landed on the United States it’s impact has been uncertain. Having witnessed the impact it had in China, we collectively braced for impact, but I don’t think anyone thought it would have the effect that it has.
Two week’s ago, I reported that New York, New Jersey, and Pennsylvania had been placed under lock-down by the Governor’s of each state. Since then several states have followed suit.
According to Business Insider.com 36 states plus Washington DC and Puerto Rico are under stay-at-home orders.
A federal directive has yet to be issued as the number of infected persons in the US reaches over 300,000 cases.
Each of the 36 states have generally ordered everyone to stay home and avoid physical contact by observing social distancing of 6 feet or more. All gatherings of 50 or more have been cancelled and areas where people typically congregate like beaches and state parks have been closed. I have heard some anecdotal stories of police breaking up “Corona Parties” of 50 or more people defying the order.
For the most part, businesses have been shuttered and over 3 Million people have filed for unemployment, but some businesses have been allowed to continue operations.
Businesses that can operate remotely and businesses deemed “essential” have been allowed to remain open, but determining whether a business is “essential” has proven to be more difficult than expected.
The construction sector has had an especially difficult time determining how to proceed. This is due in part because of the disparity from state to state and a lack of a federal mandate.
If you have been reading this blog consistently for the past few weeks, you probably were expecting this week’s article to be the fourth and final installment detailing my talk from the ProcureCon Conference this past January.
That article will publish next week. Given the massive impact the Corona virus has had on our lives globally, I could not go on with this blog without addressing it.
So this week, we will talk about the impact the virus could have on ongoing bids and active projects.
Over the last two weeks we have been exploring collaborative agreements.
Two weeks ago, I gave you a brief overview of the difference between the AIA’s two collaborative delivery contract models. Last week, I shared some of the most pivotal clauses that shift the relationship of the parties from adversaries to collaborators.
This week, I want to share some of the case studies I have read from projects that used some form of collaborative agreements and share some of the anecdotal comments I have received from friends and colleagues that have worked under one of these models.
Last week I provided a brief overview of the two contracting models the AIA classifies as collaborate delivery.
We reviewed the nuances between Integrated Project Delivery (IPD) and Single Purpose Entities (SPE). I even correlated SPE agreements in the United States with Alliance Agreements in the United Kingdom
This week, I wanted to share with you some of the contract terms these agreements require you to accept in order to implement the model.