Monthly Archives: March 2011

Wind Power: It’s in the air!

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wind power turbinesWind Power.  It’s been defined as green, clean, sustainable, and even affordable.  In an effort to be more “green,” save or even generate money, and reduce waste, several companies are turning to the wind turbine.

In Indiana, Purdue University and its commercial partner Performance Services have planned and designed a  $200 million wind farm scheduled to begin generating electric power by late 2012.  Earlier this week, the University gave approval to proceed with the project, which will involve obtaining regulatory approval.  If the project is approved, the team hopes to generate 100 megawatts, which could power up to 25,000 homes.

In Canada, Greengate Power Corp. just this week  has received provincial approval from the Alberta Utilities Commission to build Canada’s largest wind farm in southern Alberta.  The project  is expected to be Canada’s largest operating wind energy project with a total generating capacity of 300 megawatts when it is completed.

Also this week, in a town outside of Boston, the local Conservation Commission has approved a wind turbine project, despite objections from the local golf club.

Closer to home, Iberdrola Renewables earlier this year filed an application with the North Carolina Utilities Commission to build what would be the state’s first commercial wind farm in Pasquotank and Perquimans counties.  If approved, the project would occupy approximately 20,000 acres of private land near Elizabeth City, and could potentially provide electricity for 55,000 to 70,000 North Carolina homes.  Construction of the structure, if approved, is slated to begin by the end of this year and could create about 400 jobs.

Share your thoughts:

What is your opinion of wind turbines? Do they make sense?  Is the return on investment worth the additional upfront costs? Do you just plain think they are ugly and not want them in your backyard, or do you see them as modern art and things of beauty?  Drop me a comment!

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Photo:  FreeFoto.com

ConsensusDocs: Training on the new forms (Tue Tip)

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ConsensusDOCS logo

As previously discussed on this blog, one of the form contract sets available for construction projects is that of ConsensusDocs.  ConsensusDocs was created in 2007, based on the (now discontinued) Associated General Contractors of America forms.

The newest ConsensusDocs forms have been released–three years early.   As explained by Chris Hill on his Construction Law Musings  blog, the early release is due to the many changes in the construction industry since the release of the first documents in 2007.

Now there is a free webinar that will discuss the changes to the revised ConsensusDocs forms, including topics such as:

The webinar will take place:

Thursday, March 31st from 3:00 PM- 4:30 PM ET

Questions about ConsensusDOCS or other form contract documents?  Drop me a line in the comment section, below.

 

Update/Correction to Lien Law post

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opps sign After my last post, I received a call from Doug Jeremiah, who is the Chair of the Design Professionals Liason Committee (of which I am a member).  According to Doug, the concerns I expressed for designers have been, if not eliminated, then significantly reduced by the current version of the draft lien law bill.

Designers, like any other party on the construction contract, can now file their own, separate Notice of Commencement, which would then (in all likelihood) pre-date other Notices of Commencement on the Project.  To file a Notice of Commencement under the proposed bill, the Designer first must ask the Owner to file a Notice of Commencement.  If the Owner does not do so, the Designer is free to file his own Notice of Commencement (See section 44A-9.1 (3)(c)).  This is the same procedure used by Contractors to file a Notice of Commencement.

Practice Tip (should the bill pass):

How the Owner will view the request for an early Notice of Commencement may still be an issue.  If the bill passes, a good, proactive discussion with the Owner should help prevent creating animosity.  Better yet, you might consider a Company Policy of always having a Notice of Commencement filed on every project.  That way, you can simply blame the “company policy” rather than implying, or having the Owner infer, that you don’t trust their financial viability.

Thanks, Doug, for setting me straight.  Opinions or thoughts about the proposed lien law revisions?  Drop me a line in the comments, below.

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Photo credit: Streetfly JZ via Creative Commons License.

Lien Law Changes: Bad for Designers?

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UPDATE:  Designers may file Notices of Commencement when they start their work, which should eliminate or significantly reduce the priority date concerns expressed below.  See this post for more details.  — mdb  3/4/11

gavel, law books, & hard hat

The work of the NC Bar Association’s Construction Section Lien Law committee continues, and it may drastically change the lien law landscape for architects and engineers.

On February 18, the Construction Law Section Council, the governing body of the Section, voted 11-4 to accept the latest draft version which must still be approved by the NC Bar Board of Governors.  After approval by the Board, it will then need sponsorship at the General Assembly.   The lien law changes have divided the construction industry – some believe the changes are beneficial, while others worry about new requirements contained within the bill.

Of particular note for architects and engineers, the new lien law envisions a new Notice of Commencement which would then act as the first date of service for everybody who works on the project.  The new law would give almost everyone on a project the same priority date.  Almost all liens would then relate to and take effect as of the Notice of Commencement date.

In other words, designers and others who perform work very early in the project would have no stronger lien rights than those who perform work at the very end of the project.  If there are insufficient funds to satisfy all of the liens, the net result is that architects and engineers will have to share pro rata will all contractors and subcontractors from the owner’s assets.   (And, to answer a question posed to me the other day, yes, architects and engineers have lien rights on projects in North Carolina!)

Is there a way around this for designers and other early performers? Yes and no.  One way a designer can protect his priority is by filing a Claim of Lien before the Owner files the Notice of Commencement.  (See section 44A-10 of the new draft bill).  However, as you can imagine, filing a Claim of Lien before construction has even started is likely to be frowned upon by the Owner.  Furthermore, the lien would have to be timely perfected, which involves actually suing the Owner.  Obviously, use of the Claim of Lien to beat the proposed Notice of Commencement date will have limited, if any, practical use for construction professionals who are working on a project and want to maintain a good relationship with the Owner.

There are many good things in the new bill: a way to streamline payment issues to ensure subcontractors are timely paid when the general contractor is paid, for example, as well as an attempt to provide lien rights to parties even after a bankruptcy filing, which had been made impossible by recent cases.   However, the priority issue is definitely bad for designers, as well as others who do their work very early in the project.

Comments, questions, or thoughts about the proposed changes?  Let me know in the comment section, below.  And sign up for regular email updates from this Blog, so you never miss a post.

LEED Multi-Family Tour (Tue Tip)

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Want to peek into what is scheduled to become the first LEED certified multi-family housing complex in Wake County?  The Triangle USGBC (US Green Building Council) will be hosting a “Walk-n-Talk” at  Highland Terrace in Cary, which is part of DHIC, Inc., the Triangle area’s oldest and largest non-profit housing organization.

The issues presented will include:

  • installing optimum mechanical systems;
  • specific plumbing and water conservation feature;
  • building features that insure healthy indoor air quality for residents;
  • the interface between LEED certification and the current Fire Code; and
  • other challenges related to following LEED Homes guidelines in a multi-story, corridor building with interior apartment entrances.

NC Triangle Logo

Details of the Event:

When:  March 10th, 2011    4-6pm

Where:  Highland Terrace, Cary, North Carolina

Fees:  Free (members)/$10 (nonmembers); Pre-registration is required.

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