by Bennett Coleman
The Cost of Doing Business – Is Your Company Suffering from Increasing Material Prices?
Introduction This year, exceptionally high price increases of construction materials have caused serious problems for the construction industry. A major factor is the current economic and construction boom occurring in China. China is experiencing rapid growth and, with it, tremendous construction activity which is creating shortages in the US and throughout the world. Background...
by Bennett Coleman
Failing to Plan is Planning to Fail: Tips for Owners for Successful Projects
Part one of this two-part series addressed change order management and claims from the contractor’s perspective. This article will focus on techniques from the owner’s perspective for planning for and managing project change and avoiding claims. Although this information is geared towards owners, the information can help all parties on a construction project. Construction is not a one-way...
by Bennett Coleman
Project Change: Deal with It
Every construction project, regardless of its size, inevitably encounters change. Changes can be minor, such as field rerouting of pipe to avoid an interference, or they can be major, such as a massive acceleration effort costing millions of dollars for additional personnel and overtime premiums. Managing change is an important aspect of construction project management and successful project...
by Bennett Coleman
Interpreting Force Majeure in the Wake of Disaster
In general terms, force majeure is considered to be “an act of God” or an occurrence outside the control of the parties which impacts or delays the project. Force majeure includes issues such as unusually severe weather, labor strikes, natural disasters, or governmental actions/changes in law that negatively impact the work. Typically, force majeure is not considered to be a compensable...
by Bennett Coleman
Time Equals Money: Maximize Efforts to Resolve Project Changes
In the construction industry, the ability to manage change can determine the success or failure of a project’s objectives. The failure to recognize and promptly manage change frequently costs the parties involved money and time. Establishing a change order management process using either contractual change order requirements or a firm’s proprietary system increases the effectiveness of...
by Bennett Coleman
Increasing Material Prices Gouge Construction Industry
IntroductionThis year, exceptionally high construction material price increases have caused problems for the construction industry. A major factor is the current economic and construction boom occurring in China. China’s rapid growth and tremendous construction activity are creating shortages in the US and throughout the world.BackgroundBasic economics dictate that, in an open marketplace,...
by Bennett Coleman
Change Order Management
A claim is an unresolved change order. Conversely, a change order that is agreed upon and processed does not become a claim. Change order situations that are resolved knowledgeably, fairly, and promptly will benefit both the owner and the contractor. Federal government studies have shown that early settlement of change order problems minimizes cost to owners. Likewise, contractors benefit by...
by Bennett Coleman
Contracts Must Be Reasonable
Contracts, which are intended to eliminate problems, can be the open doorway to disputes and claims. Contracts that are one-sided promote dispute resolution through litigation. Bias in contract language and interpretation leads to increased costs for all parties. The following article suggests ways in which owners and contractors can work toward equitable contracting. Disruptions or...
by Bennett Coleman
Is Design Build Right For Your Project
Over the past 20 years, the design-build process has gained popularity throughout the engineering and construction industries. The Design-Build Institute of America estimates that by 2010, approximately 50% of all construction projects in America will use design-build. Regardless of whether these projections prove to be accurate, it is impossible to ignore that more projects are employing...
by Bennett Coleman