Tag Archives: construction

Energy Inc. Conference: the Future of Energy (Tue Tip)

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alternative energy towersDid you know that North Carolina is one of the top nuclear power producers in the country, and also one of the top states in electricity consumption?  North Carolina also ranks among the top 10 states in wind power capacity (pdf).

If you are interested in the future of energy, come on out on for a breakfast seminar entitled “Energy Inc.””

Topics will include:

  1. How will alternative energies such as solar, wind, & water shape the future?
  2. What is the future landscape of collaboration between energy companies?
  3. How will energy laws change energy production/consumption in the future?
  4. How will the state’s energy change as a result of the  Duke Energy/Progress Energy merger ?

 

Panelists: 

Location: 

Cree LED Lighting,635 Davis Drive Ste. 100, Morrisville, NNC 27560

Date: 

Thursday, June 23, 2011

Time: 

7:30 AM          Registration & continental breakfast

8:00-10:00 AM:         Program

Are you interested in energy issues?  What do you think of the Duke Energy and Progress Energy merger?  Alternative energy issues?  Drop me a comment and share your thoughts! 

Photo:  (c) Freefoto.com.

Contract Essentials: 8 key points to consider

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eight ball

As promised, my guest post on Contract Essentials is now live over on Construction Law Musings.   Go on over and check out my post on the 8 key points you should consider in your construction contract. 

While not an exhaustive list, the 8 issues I discuss will put you on the right path to avoid litigation later over a construction project “gone wrong.”

Be sure to check out Chris’ other great construction law articles while you are there, and leave a comment to say “hi”.  See ya there!

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Photo:  behind the eight ball via Ed Schipul/Creative Commons license.

Free Passive Solar House Plans (Tue Tip)

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NC Energy Alliance Logo

Are you familiar with the North Carolina Energy Efficiency Alliance (NCEEA)?  The Alliance is a non-profit organization (funded by a federal grant through the NC State Energy Office) which “aims to educate all stakeholders in the home building industry about the benefits of ENERGY STAR homes.”

Among the resources on its website, the NCEEA offers a downloadable 59 page white paper entitled “Affordable Passive Solar Handbook for North Carolina“, which includes 12 different house plans that incorporate passive solar concepts.  Some of the plans are converted from a variety of sources including Habitat for Humanity; others are original designs.

Solar Features include:

  • 6-11% of floor area is south facing glazing
  • 2 foot overhangs
  • slab on grade construction with incorporated thermal mass
  • main living areas on south side of home

Affordable Features include:

  • even exterior dimensions, to eliminate construction waste
  • 900-1300 square feet footprints
  • simple roof lines than can be built with trusses

According to the white paper, full sets of working drawings are available for free online at www.energync.net  or www.ncenergystar.org.  However, if you can find the applicable link at either of those sites, you are better than I am.   I’m sure that if you contact the NCEEA they will point you in the right direction.  (And if you do, please drop me a line as to where they can be found).

Have you reviewed the white paper?  What do you think of their design concepts?  Share in the comments below.  And, if you are new here, be sure to sign up for regular email delivery of blog posts to your inbox so you never miss anything.

Photo:  NCEEA Logo

The Architect Has No Clothes! (or, why subconsultant contracts matter)

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Caesar statute

Everyone is probably familiar with the story the Emperor’s New Clothes.  There, the Emperor is not wearing anything but his birthday suit, and yet everyone is afraid to tell him so.  Today’s lesson is how to avoid being the clothesless fool by making sure you are covered with appropriate contracts with your subconsultants.

Previously we have talked about the need for a written contract on your construction projects.  Usually, the focus is on the contract agreement with the Project Owner.  Just as important, however, is the contract with your subconsultant.

A recent case brought to the attention of the E&O carrier Victor O. Schinnerer demonstrates what can happen when you have a signed contract with the Project Owner, but your subconsultant contract is not yet formalized.

The architect’s subconsultant agreement had been revised by the subconsultant to include the following language: 

Subconsultant’s maximum aggregate liability under this Agreement shall not exceed $250,000.

Having been warned of the dangers of limiting the liability of a subconsultant without having a corresponding limitation in the prime agreement, the architect attempted to further negotiate with the subconsultant. The subconsultant agreed to increase their liability to $500,000 but said “I am told by our legal counsel that based on the work we are doing and the amount of our fee, $500,000 is our limit.  

Work on the project had already started, but the subconsultant was withholding their design documents until they received a signed contract.  At that point, the architect turned to his E&O carrier for advice.

His options were limited at that point, and the architect was left with weighing the risk of a claim in excess of $500,000 versus the risk of a delay claim from the Project Owner if he took time to seek out a new subconsultant.  Essentially, the architect had no clothes.

Keep this lesson in mind the next time you are negotiating with subconsultants about a planned project.  You should ensure that their contract has the same obligations that you have in your contract with the Owner.

Have you experienced a situation where you were contracted to perform, but your subconsultant refused to sign a contract with similar terms? How did you handle it?Drop me a line in the comment section.

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Photo: (c) Mary Harrsch via Flickr/Creative Commons License.

Surety Bonds & Baseball (Guest Post)

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ballpark construction surety issuesIn lieu of a Tuesday Tip, today we have another Guest Post, this time by JW Surety Bonds, an A+ BBB-rated surety agency outside Philadelphia that sells surety bonds nationwide.

Take Me Out to the Surety Bond Game

Nothing says summer like heading to the ballpark for nine innings of cheering, athleticism and hotdogs. While the excitement of professional sporting events may not immediately bring to mind the less-thrilling (yet highly important) world of surety bonds, the two are intricately tied together.

Most obviously, multi-million contract bonds start the process of any new stadium building project. As stadiums get more and more complex, each trying to outdo the previous contender, the financial strain put on contractors becomes more acute. Thorough research is needed by surety companies to weed out wanna-be firms from those with the actual resources and know-how to erect a high definition, 4-D, interactive scoreboard the size of theChryslerBuilding. Team owners need to know their pampered players will have a locker room to call home by the time opening day rolls around, or risk the ire of sports-deprived fans.

Beyond the general infrastructure, bonds are also required to secure everyone’s favorite part of a sporting event: the beer vendors. Corporate catering services or individual vendors hired to work in a stadium may be required to obtain liquor tax bonds as a promise to the government that they will truthfully report and pay all applicable taxes on alcohol sales.

Stadium owners can also require that food vendors of all kinds secure a performance bond to cover the length of the season. While the details of such a performance bond vary widely, they essentially serve to guarantee that the vendor will provide enough soft pretzels, hot dog buns and roasted peanuts to last through playoffs. Should a vendor default on their bond, the stadium owners could file a claim to receive funds to hire someone else to feed the masses for the remainder of the season.

About the only thing in a stadium that can’t be bonded is the players, but not for lack of trying. In 1983, the coach of aUSOlympic volleyball team admitted to requiring his star player to post a performance bond. The player had previously quit, and the coach demanded a cash deposit to guarantee the player would stick around through the 1984 Olympics if he was allowed back on the team. While creating a contractual and financial obligation for a pitcher to complete a no-hitter or a pinch hitter to steal a given number of bases would be appealing to team managers, it’s neither practical nor beneficial.

With the average cost of a new stadium at just below half a billion dollars, and annual sports revenue well into the millions, it makes good business sense for owners to carefully vet and bond all parties involved, ensuring a homerun success.

Questions or comments about surety bonds, and your experiences dealing with bonding companies?  Share in the comment section below. 

If you haven’t already, be sure to also sign up for email or RSS delivery  direct to your inbox or reader so you never miss a Construction Law NC blog  post!

 Photo by  vivoandando via Flickr/Creative Commons license.