Author Archives: Melissa Dewey Brumback

ENR’s Top 500, the Economy, and Lawsuit Fever

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Engineering News-Record logo

Engineering News-Record (ENR) has released its annual list of the largest 500 design firms in the United States.  The list is based on design revenue generated by the firms, and covers both public and privately-held companies.

The bad news?  According to ENR, overall design revenue of the top 500 firms ($79.8 billion in 2010) was down 0.2% from 2009.  I know my clients have been hit hard. 

One thing that construction lawyers see in down markets is more lawsuits.  Whereas in good times people will let something go to move on to their next project, in slow times contractors and owners sometimes look for a scape-goat.  That scape-goat, more often than not, is an insurance-carrying design firm.  Sad, but true.  Now, more than ever, make sure that you are practicing good risk avoidance, documenting everything, and communicating thoroughly.

There is some good news:  “There is a general feeling among the Top 500 firms that the markets will recover over the next 12 months.”  Let’s hope they are right.

What do you think?  Will the market improve this year?  How is your company weathering the economic storm? 

In the Weeds of Green Building (Tue Tip)

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"Into the weeds" green building lecture

If you are in the Raleigh-Durham area, make plans to attend a discussion on green design called “In the Weeds of Green Building,” sponsored by the Triangle USGBC and the Green Home Builders of the Triangle.   

The talk will feature discussion about the first LEED-for-Homes and National Association of Home Builders (NAHB) Green certified home located “inside the beltline.” 

The designer, Michael Chandler (with partner Beth Williams) of Chandler Design Build will be on hand to discuss decisions, costs, and replicable techniques and methods. 

Lecture Details:

Friday May 13th 2011
4:30-6:30pm
2825 Barmettler Street, Raleigh, NC 27607
$15 (Triangle USGBC or GHBT Member) / $25 nonmembers.
Register here 
 
Green Homes Tour

The lecture is the kick-off for the Triangle Green Homes Tour, which is a self-guided tour of local green homes that takes place on Saturdays and Sundays, May 14 & 15, 21 & 22, 2011.

Do you have experience with LEED-for-Homes or NAHB green certification?  In your opinion, what are the most important principles to keep in mind when designing for a “green” home?  Let me know in the comment section, below.
 
 Photo (c) YogurtLand.com via Creative Commons license.

It’s a Dirty Job, but Someone had to do it!

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Ever watch the TV show Dirty Jobs?  If so, then you know Mike Rowe, the real-life guinea pig who has test-driven over 300 “dirty” jobs. Now, Mike has launched Mike Rowe’s Trades Hub, a site that gathers together blogs relating to safety, equipment, contracting, legal issues, labor issues, marketing, insurance, as well as blogs covering specific trades such as architecture,  HVAC, excavation, and plumbing.  Consider it “one stop shopping” for your business.

This blog was chosen to be featured on the legal pages of the Trades Hub.  Stop on by and check it out.  There is a wealth of information on the Trades Hub  that may be helpful to your A/E/C business.

 

Comments or questions?  Just really like Mike and want to say “hi”?  Comment below!mike rowe

Planning Ahead for Additional Compensation

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money for additional services for construction administration

Does your designer contract have provisions in it for additional compensation in the event the construction project takes longer than the parties anticipate?  If you use the AIA 201 (2007) general conditions for the Contractor, it may.  The AIA provisions include:

 

 § 1.1.2 THE CONTRACT

The Contract Documents form the Contract for Construction. The Contract represents the entire and integrated agreement between the parties hereto and supersedes prior negotiations, representations or agreements, either written or oral. The Contract may be amended or modified only by a Modification. The Contract Documents shall not be construed to create a contractual relationship of any kind (1) between the Contractor and the Architect or the Architect’s consultants, (2) between the Owner and a Subcontractor or a Sub-subcontractor, (3) between the Owner and the Architect or the Architect’s consultants or (4) between any persons or entities other than the Owner and the Contractor. The Architect shall, however, be entitled to performance and enforcement of obligations under the Contract intended to facilitate performance of the Architect’s duties.

The language that I bolded is very important language.  It may provide a mechanism to recoup additional service fees for extended construction administration services.  Note, however, that I said “may.”

If your fees are based on a set number of construction days, what happens if the project gets extended?  Do you simply go without pay for extra months of CA services?  Do you re-negotiate with the Owner at that time?   You should consider this issue in advance to avoid disputes later on. 

Best practice?  A clause in the Owner-Designer contract that states that additional services compensation will kick in after a certain date,  at a set value per month.  

If you wait until the issue comes up during the final phase of construction, you have much less bargaining power.  You also run the risk of the Owner claiming errors and omissions against you when you present a bill for extra services.  Deal with the issue up front, in much the same way that unit prices for rock overages are provided for upfront in the contractor’s contract. 

Do you have experience with getting additional compensation after construction delays?  What worked best for your company?  Share below. 

And, sign up for email delivery of blog posts to your mailbox!

 Photo (c) Freefoto.com via Creative Commons license.

 

Spend Less Time with Your Lawyer with these Tips (Tue Tip)

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 “The best time to plant a tree was 20 years ago.  The next best time is now.”  ~Chinese Proverb

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If you haven’t yet acted to streamline your contracts and your new client procedures, do so now.  Unless, that is, you like spending time with your lawyer.  Lawsuits take time and money.  Avoid them (and your lawyer) through good risk avoidance practices.  

Last year I wrote a post on 6 Ways to Limit Risk through effective use of contracts on your Projects.   Included in that list were such tips as:

  • Always, always, always use a contract for each new project.  (Verbal agreements are very hard to prove in Court).   Without a written contract, you are trusting yourself to laws you may not agree with or giving up valuable protections.   
  • Get your contract reviewed by your insurance carrier.  Insurance check-ups through your agent or broker are usually free.  Why risk it? 
  • Have your contract reviewed by your attorney.  ( I happen to know someone who does this regularly for her clients.)
  • Establish a new client protocol.  Make sure all new clients sign proposal or engagement letters.  Document now; worry less later.

These are all extremely important ways to minimize your risk.  Of course, if you are reading this blog, I recognize that I am probably preaching to the choir.  But it is worth repeating.  Just do it.

Do you have procedures that minimize your company’s risk?  Tell me in the comment section, below, what has worked for you.

If you need help creating or revising your contracts or client protocols, drop me an email at [email protected].  

Photo: (c) Freephoto.com via Creative Commons License.