In this column, the owner of a surety bond agency and a construction lawyer give project owners an outline of the steps to obtain a surety bond, the claims under a bond and the pros and cons of takeover agreements. "Mechanics liens violate mortgage agreements, prevent owners from receiving additional draws under their construction loans, and in certain circumstances prevent new contractors from being retained for a project," they write.
Pricing for property reinsurance generally rose by single-digit and low-double-digit percentages at April 1 renewals, while cyber and specialty prices experienced steeper increases, doubling for loss-hit accounts in some cases, Willis Re says in a report. "Although there is more consensus around exclusionary language for Communicable Disease and Cyber" than at Jan. 1 renewals, such language remained a "hot topic" in renewal discussions, the report says.
Purdue University's online MS in Civil Engineering is ranked #2 in Best Online Master's in Civil Engineering by U.S. News and World Report. Learn from world-renowned professors who bring their research to the classroom. Apply for the summer semester by May 1 or fall semester by August 1. Learn more
The recent Suez Canal blockage has caused construction supply chain delays that could result in disputes in which contractors lean on force majeure provisions, three attorneys write. However, it's unclear if the clauses cover extreme shipping delays beyond a contractor's control, and the outcome of each dispute will depend on jurisdictional precedents and specific contract language.
Ensure project completion with site reality solutions The ability to use aerial and site reality data is key to saving time and money on large projects during all construction project stages. Join us on Thursday, April 15th at 2PM ET to learn how innovative leaders use drone and site reality software solutions to help mitigate risk on complex projects, such as identifying safety hazards. Register now.
Attorney R. Thomas Dunn examines the Massachusetts Prompt Pay Act, which establishes payment provisions for private construction projects with a contract price of at least $3 million. Risk managers of owners, contractors and subcontractors should heed the decision in Tocci Building Corp. v. IRIV Partners, which shows state courts "will likely enforce the Act per its terms," Dunn writes.
Experts at the American Concrete Institute's Virtual Concrete Convention stressed the importance of constructability, which goes beyond effective documentation to integrate construction knowledge into all aspects of a project. Panelists also offered advice on repairing concrete in hot weather and discussed how to avoid formwork failure and pumpability issues.
Attorney Jeffrey Risch encourages contractors to review prevailing wage assessments and not automatically pay the assessments. "While contractors who intentionally cheat the system and ignore their legal obligations should get what they rightly deserve, many contractors are facing audit assessments that are simply off or incorrect," Risch writes.
A contractor on Ohio highway projects has agreed to pay more than $315,000 to resolve False Claims Act litigation accusing the company of violating federal Disadvantaged Business Enterprise program rules. The company was accused of assigning work to a subsidiary company that did not qualify as a DBE to augment its profit.
Looking to learn from many of the recognized leaders in the field of construction risk management? We're bringing together top minds to cover and invite discussion on a broad range of surety, insurance, contracts, and business risk issues. Meet our breakout session speakers and explore the full agenda, click here. Then make plans to join AGC in person June 2-4 in Bonita Springs, Florida. Register now.