I wrote previously about not using mediation to resolve construction disputes. I mentioned that all parties may not want to settle the dispute, it was not binding, and it was an intermediate step that could consume money and time. So, how will you know when not to use mediation on your construction dispute? The most common [...]
Monthly Archives: June 2009
Don’t Forget the Fuel
When preparing an estimate for an emergency generator always be sure you know who is responsible for the fuel. Leaving the cost of fuel out of the estimate can be a costly mistake!
When Costs Collide
I believe the contracting community is about to be put into a squeeze of large proportions! Commodity prices were drastically rising until the September/October 2008 time period. Since then they have plummeted, recouped some loses and fallen again. At one point in time copper was cheaper in 2009 that in was in all of 2008. [...]
Handling Errors In Bids
Say a contractor makes a substantial mistake in a bid. Is the contractor required to perform the work for its bid price in spite of such an error or should the contractor be able to withdraw the bid? What if the error could potentially cause an undue hardship for the contractor, subcontractors, and suppliers? [...]
Hospitals – Medical Gas Piping
Many times when working on hospitals and installing medical gas systems the installers of these systems must be trained and certified. There are companies that offer on site training for this certification. Contact your local mechanical associations to find out how to become certified in your area and the associated costs involved with the certification [...]
FutureGen Project – Pork Barrel Now
The Department of Energy resurrected the FutureGen project in Mattoon, Illinois. This project is supposedly the “Flagship” of the future when it comes to generating power from coal – with reduced emissions. The problem is this project could not survive without the government contributing substantially to the cost of the facility. Why is this? Could it [...]
Government Stimulus Estimates
Apparently there are some in the federal government that are a bit on the defensive for having used too optimistic of forecasts for the economic stimulus spending. One of their defenses they are citing is the lack of complete information when making the forecasts. It sounds like a pretty lame excuse to this estimator. However, [...]
Piping System Testing
Many times the specifications call for specific flushing and testing of various piping systems. Another area that needs special attention is pipe insulation, piping identification, valve tagging and valve tag charts. Passivation is a real and significant cost for a project, especially if it requires hiring a subcontractor from out of state to come in [...]
High Speed Rail Transportation Stimulus (Pork Barrel)
I really, really like trains. I like real trains so much I have a scale train system in my office building (G Scale for you train fans). According to USA Today on the web, the federal government is planning to outlay up to $10 billion in stimulus funds for high speed rail projects. What will [...]
Construction Profits Are Down!
The basic law of supply and demand has hit with a vengeance in the construction industry. Virtually every firm in the construction delivery/supply chain is scrambling to develop a backlog to carry them through the lean period. Even those with backlogs into next year are chasing work at ever lessening prices. But, what is the [...]
