In presentations I often mention that every construction contract is the beginning of a construction dispute. The same usually applies to architects agreements and other design contracts too. With that in mind, I'd like to hear from you. What terms do you prefer in your contracts for resolving disputes: nothing, mediation, arbitration? Vote below. And add a comment to elaborate on your vote...
The Arizona Supreme Court applied the economic loss rule (the "ELR") to bar a construction related claim for the first time last week.
Overly simplified, the ELR is a judge-made rule that bars many extra-contractual claims for design and construction defects when those claims seek only damages for the cost to repair or replace defective work, not damages for death, personal injury, or damage to other property.
In Flagstaff Affordable Housing Limited Partnership v. Design Alliance, Inc. the Justices applied the ELR to deny an owner's claim against their architect for negligent design of an affordable housing project in Flagstaff, Arizona.
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In Building Overrun Cases on the Rise, journalist Ed Hammond at the Financial Times reports that late completion disputes are already rising this year in the UK. He also mentions:
Will these tends continue in the in the UK? Will they cross the Atlantic to North America too?
As construction disputes intensify and relationships become more strained, your contracts will come under more scrutiny. Are you and your contracts fortified for that?
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In Overcoming the Ugly Factor in Building-Integrated Solar Design, journalist Jennifer Kho reports on how Skidmore Ownings, & Merril and the Rensselaer Polytechnic Institute are collaborating to make solar energy-gathering materials look better.
One source says "most applications thus far are pretty ugly and impede your view."
While visual elegance may not seem like a serious concern to those determined to generate electricity from the sun, for architects and developers looking to sell or rent properties, looks matter.
The SOM/Rensselaer collaboration is focusing on a dynamic solar facade, a panel composed of glass elements like the one to the right. In its current design, it's hung on wires that move up and down and twist from side to side to track the sun. The idea is to produce a system that combines aesthetic appeal with more efficient capturing of the sun's UV radiation.
Engineers and designers recognize that for building owners and operators who must rent and sell property to meet pro formas and satisfy investors and lenders, energy efficiency and government incentives aren't the only factors in the green building calculus. Like it or not, curb appeal attracts tenants and buyers. The engineers and designers are addressing that factor too.
Focusing locally today on my own hometown, this Crain's broadcast offers a sobering forecast for the Chicagoland residential real estate and construction markets. Do you agree? Watch the video, vote, and elaborate by posting a comment using the link below below.
Judges to owner: demanding that your contractor foreclose their mechanics lien within 30 days or lose it forever waives your right to require arbitration.
Unfortunately, the Illinois Appellate Court (Second District) decision in Illinois Concrete-I.C.I., Inc. v. Storefitters, Inc. (PDF) doesn't give us too many background details. Here's what we can gather: an owner entered into a contract with a contractor to provide some type of construction work for the owner. The contract had an arbitration clause, presumably one that says that if the owner and the contractor get into a dispute, they must submit the dispute to binding arbitration instead of resorting to the courts.
The owner and the contractor got into a dispute. The owner didn't pay. So the contractor recorded a lien against the property they'd worked on.
Under Section 34 of the Illinois Mechanics Lien Act (PDF) an owner (and others too) can serve a written demand on anyone holding a mechanics lien against their property (a "mechanics lien holder") demanding that the mechanics lien holder sue to foreclose their mechanics lien within 30 days (a "Section 34 demand"). And if the mechanics lien claimant doesn't go to the clerk of the court and file their foreclosure complaint before that 30 days expires, the mechanics lien claimant forfeits their lien.
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AuggieV over at Building Green CT reports a Recent Surge In Connecticut Green Building News May Be A Good Sign. Some of the things he mentions:
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