Lessons from a Diner: Up Front Costs can Save You Money in your Engineering Practice (law note)

greekgrilled.jpgI happen to frequent a place in my hometown called Elmo’s Diner.  A lot.  As in, many of the servers know me by name.  The food is good, yes.  The selection is great.  But there is a much more important reason that I go there over and over again– the service.  Elmo’s seems to always have enough staff on hand, and they also work together to make sure your wait is never very long.

There are some other places in town that skimp on hiring waiters and waitresses.  I guess they figure, the fewer they have working at any one time, the less money they have to pay out.  Even though, of course, waiter minimum wage is much lower than regular minimum wage due to the tip factor.  But some of these other places (who shall remain unnamed) really do seem to have the mindset that they will save money by not hiring enough staff for the number of customers.

Maybe that thinking works for them- in the short run.  Do you know how much money I spend at Elmo’s Diner?  Let’s just put it this way– I really should invest in direct deposit with them!  These other places?  I forget, and go to them every now and again, thinking, it can’t be all bad, right?  And almost always, I remember why I do NOT go to them.

Now, back to construction.  Many professional service firms are like the unmentionable restaurants above– they skimp on things that “cost money”.  Notably, in two areas (1) professional liability insurance (errors & omissions coverage), and (2) getting legal assistance at the beginning of a project.  These architects & engineers are making the same short-sighted mistake, thinking they are “saving money.”  And yet, very often, in the long run they are costing themselves money– in contract disputes, legal wrangling at project end, or in paying out of pocket for large claims.

You should have E&O insurance if you are a working professional.  Period.  You should also have your contracts and proposals reviewed by a lawyer.  Preferably, before any major new undertaking.  The up front costs are small, but the impact can be huge.  Just ask anyone at Elmo’s.

Your turn.  Are there places that you frequent because of their superior service?  Do the extra costs seem to pay for themselves over time?  Share below. 

Belts, suspenders, and breakfast bars: construction contract tips (law note)

SuspendersBelts, suspenders, and breakfast bars.  Want to know what they have in common, or how they relate to your construction contracts?

Take a gander over to Construction Law Musings this morning, where I am guest-posting on the importance of being clear– very clear– in your construction contracts.

Key takeaways?

  •  clear up possible points of confusion
  •  don’t “wing it” with old contracts
  •  read your entire contract during the negotiation phase

Read the entire post at this link:  Belt & Suspenders: the preferred style for your Construction Contract.

See you there!

 

 

 

Give Way or Yield? The jurisdiction of your contract does matter! (Law note)

give way signHave you ever been to England?  If so, you’ve likely seen their version of our “Yield” sign– the “Give Way” sign.  It is a bit jarring to those from this side of the “big pond”.

Similarly, contracts can be worded differently– and, interpreted differently– depending on the state that you are in.  This is why it is always a good idea to have your contract or proposal vetted for the state(s) where you provide professional services.

When confronted with a “give way” sign you have the general idea of yielding, but might be confused by that whole “left side of the road” thing in some countries, where if you are turning right, you must give way to all vehicles coming towards you including those turning left.  Likewise, you might have a good understanding of your construction contract in one state, but not how it would be interpreted in another state.

As just one of many examples– the statute of repose can vary widely.  In North Carolina, it is 6 years.  In South Carolina, it is 10 years.   The jurisdiction (state) that you are in does matter– sometimes critically so.

Have you ever found yourself in trouble because of a difference of state laws from what you are most familiar with?  Share in the comments section below.

 

 

Don’t Let Construction Problems Become Construction Disputes (guest post)

Chris HillTo start our week off right, today we have another important article from guest blogger Christopher G. Hill, LEED AP.  Chris is a Virginia Supreme Court certified mediator, construction lawyer and owner of the Richmond, VA firm, The Law Office of Christopher G. Hill, PC.  He authors the Construction Law Musings blog where he discusses legal and policy issues relevant to construction professionals.  His practice concentrates on mechanic’s liens, contract review and consulting, occupational safety issues (VOSH and OSHA), and risk management for construction professionals.  [His blog was also one of the first construction law blogs I found and followed, even if he is a Duke alum!]  Take it away, Chris!

First and foremost, thanks to Melissa for inviting me back to post here at her great blog.  She continues to invite me back despite my being a Blue Devil (and I try not to hold her Tar Heel status against her).

So much of discussion relating to construction law and construction lawyers centers on the litigation of disputes.  This discussion comes in many forms from avoidance of such litigation through the early intervention of good counsel prior to getting into a project to what sort of resolution mechanism to use. Another branch of this discussion is essentially the right way to pursue your claim (or as some may read it start the dispute ball rolling).  Sometimes a payment bond claim is the best method while others a straight up contractual suit is the best way to go.

Of course, all of this discussion presumes that there will be disputes.  While I agree to some degree that in the Murphy’s Law riddled world of commercial construction, problems will arise.  These problems need not rise to the level of a dispute that requires outside (read court or arbitrator) intervention.  A few tips that are easy to write, but admittedly hard to practice at times can hopefully keep problems from blossoming into disputes.  I’ve listed a three big ones here:

  1. Use “in house counsel.” Yes, I know that most of you engineers, architects, commercial general contractors and subcontractors out there aren’t big enough to either want or need a full time attorney on the payroll. What I mean by this is that when problems occur (or preferably before doing so), give your friendly local construction lawyer a call. As I learned from my dad, an ounce of prevention and all that. That 10 minute phone call may help avoid many hours of time and bills from your attorney later down the road.
  2. Build Relationships. This seems like more of a marketing tip, but it is also a risk prevention strategy. I have seen many a potential dispute get resolved with minimal or no intervention on my part simply because the general and subcontractor had a good working relationship. With the right team oriented approach and communication many a jobsite problem can be resolved in the pre-dispute stage. If the two companies don’t know each other, this is less likely to occur.
  3. Communicate Up Front. I know, I beat this drum a lot. Why? Because it’s a big deal. Setting the right expectations through proper communication and negotiation on the front end will set the terms of the “deal” and give all involved a guide for how to deal with problems as they occur.

Following these three tips will help you avoid construction disputes and the hefty attorney fees that come with the prosecution of those disputes.

Can you think of other tips that we can add to the list?  Let Melissa and me know.

Thanks Chris! As always, you hit the nail on the head (pun intended). For those that don’t already follow Chris’ blog (and why don’t you???), do check it out and show him some blog love. You’ll learn a lot, and be glad you did.

Wake County Justice Center- a LEED Silver Project done right!

Justice Center

The atrium

Yesterday evening, I had the privilege of attending the Triangle USGBC’s  “Talk & Walk” at the Wake County Justice Center.  The 576,996 square foot Justice Center was completed 6 months early and over 30 million under budget.  (The final cost, including soft costs, came in at ~$141,000,000).  Now that’s what I call a LEED project done right!

Interestingly, the County did not endeavor for a LEED Silver rating– the plan was to aim for a Certification.  However, as the process unfolded, the Team kept meeting the goals and points for a Silver certification without any appreciable additional costs.

The end result?  An “iconic but energy efficient building,” according to Tim Ashby, current Wake County Facilities Project Manager.  Tim was initially involved in the Project while working at O’Brien Atkins, which served as the architecture firm for the Project under the direction of Architect Andrew Zwiacher.

The Project was a Construction Manager at Risk project, involving a joint venture between Balfour Beatty Construction and Barnhill Contracting Company.   Did the contract type contribute to the success of the Project?  According to Project representatives, it likely was responsible for the 6 month early completion due to the high level of coordination.

Energy efficiency in the Building comes from the low flow plumbing (total water savings of 45%, 15% more than LEED requires), programmable and natural daylighting, and almost 98% construction waste diversion.

Jury Room

The large & relaxing Jury waiting room

Another interesting legal factoid: BIM (Building Information Modeling) was utilized.  Through BIM, a conflict was discovered in the space allocated for the air handling units versus the planned size of those units.  This discovery enabled a change to the AHU units (to make them wider and shorter) prior to manufacturer, saving untold delays in time and increases in cost.  We’ll talk more later about the pros (and cons) of BIM, but suffice it to say it worked very well on this Project.

If you haven’t been by to see the Justice Center yet, please do.  It’s a great design (17 elevators!), and a great change from the old Courthouse across the street.

Have you seen the Justice Center yet?  Thoughts on the design?  Share in the comments below.

Photos (c) Melissa Brumback. .Creative Commons License