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Getting Started With Integrated Project Delivery Part 4: Contracts

Since Integrated Project Delivery (IPD) is a process that requires collaboration, the typical ways construction contracts are crafted don’t fit it very well. According to the IPD symposium report by the California Council of the American Institute of Architects (AIA) most construction contracts
“create incentives for individual firms to protect their own interests at the expense [...]

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Global Construction News: Algeria, South Korea and Tanzania

Just Build It Right: In Biskra, Algeria, the housing and town planning minister is cracking down on what he calls “urban anarchy” in building. Armed with additional funds the organizations that police compliance with building codes are imposing sanctions on builders who violate the “rules of urbanism and construction.” While a lot of the rest [...]

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It’s All In The Details

I received a note from a construction management student who asked for an opinion on a case study where a subcontractor lost (is loosing) a boatload of money. This case reminded me of just how important those little details are when companies are in the early stages of bidding a project.
In this instance the subcontractor [...]

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Legislation Aims to Level Indemnity Playing Field

Sub contractors are taking to the streets- well not literally, but they are kind of rankled- out in California because of indemnity clauses in contracts with GCs. They don’t think it’s fair that contracts are written to pass costs of building failures along to them, almost exclusively. So they are behind legislation that will lower [...]

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Rebellious Rantings About Retainage

I don’t know why I’m even opening this can of worms but it is an interesting topic and one that people have a wide range of opinions on. The fact that “retainage” isn’t even recognized as a word by my spell checker ought to make you suspicious. And the fact that it sounds like a [...]

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Dangerous Ideas About Construction Contracts and Documents

I have probably read just enough about Consensus DOCS to be dangerous, yet I still have the nerve to offer some opinions on it.
In September 2007 the Associated General Contractors in unison with 20 construction-related organizations released what has become a challenge to the status quo of American Institute of Architects (AIA) contract documents. [...]

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Mining For Referrals Offers More Work In Uncertain Times

When times get challenging, and it looks like at least in the near term that is going to be the case, construction companies have to find ways to become more efficient while simultaneously becoming more aggressive in the search for new contracts. Just about everybody in business likes, and prefers, to get new business from [...]

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The Hot Potato of Risk

For everyone in the construction business risk is like a hot potato and it’s handled that way – it’s passed around because nobody wants to take the heat, regardless of their responsibility.
Originally insurance companies recognized they were in the business of insuring against risk and understood that. Today insurance companies are in the business of [...]

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