Negotiating a Contract: Clauses, Changes and Delays

Beginning with a sound construction contract can have a significant impact on a firm’s profit, loss, reputation and overall ability to manage a project. 

Risk shifting is the contracting norm, and attorneys across the country scrutinize contract clauses when deciding which client will prevail. In the sterile vacuum of negotiation, the owner and contractor presumably reached an understanding of the meaning of the contract terms. However, once a dispute arises that impacts costs or project milestones, the meeting of the minds becomes cloudy. 

There Is Pervasive Non-compliance With the IBC for Fire-rated HVAC Assemblies

  A recent multi-state market analysis has revealed that industry standard horizontal HVAC fire-rated duct assemblies are not in compliance with requirements of the International Building Code (IBC).  

Widely used in multi-story and commercial structures of all types, horizontal HVAC fire-rated duct assemblies serve a basic purpose: to manage hot gases for a period of time during a fire so occupants and first responders are safe. Specifically, these fire-rated duct systems must be rated for two hours or more. 

Reduce the Stress of Implementing ASC 606

There is no time to waste in beginning the implementation process for the Financial Accounting Standards Board’s (FASB) new revenue recognition standard, Accounting Standards Codification (ASC) 606. Companies will find differences in some of the methods of recognizing revenue in the future, so taking a proactive approach to ASC 606 can help reduce the stress of implementation.

Exploring Self-funded Health Care Plans

While it’s important to keep up with the news surrounding legislation to repeal and replace The Affordable Care Act, many contractors would be well served to consider another insurance strategy right now: partially self-funded health insurance plans. The bottom line is that the company is going to pay for a lot of employees’ medical care, so it’s important for staff to be mindful of costs because they drive premiums. This conversation alone—that employers and employees shoulder the cost of care together, and that both must be better stewards of those assets—can be a major driver of reduced costs. Aligning the interests of employees and their employers is critical in all aspects of profitability and success. 

Service Relationship Management Keeps the Connected Jobsite Running

The construction industry has become increasingly reliant upon connected data through the industrial internet of things (IIoT). The Association of Equipment Management Professionals has even produced an ISO-certified data schema for exchanging worksite data from connected assets independent of manufacturer.

Achieve a Well-oiled Machine With Modern Materials Management

Construction projects are often compared to manufacturing assembly line operations—insomuch that they are nothing alike. The typical construction project has so many moving pieces being assembled in unique ways and in varied locations, making no two projects exactly the same.

Top Five Predictions for the Future of Construction Telematics

  For more than 10 years, the construction industry has been consumed by the potential of the data-driven jobsite. For the equipment industry in particular, one of the hottest topics has been telematics.

With telematics, project managers can keep track of not only what equipment is on a jobsite, but also how each piece is functioning. Such information can improve efficiency, reduce costs and boost profits.

The Why and How of Computing POC

The percentage of completion (POC) calculation has traditionally been considered the best recognition of progress toward completion of a contract. The POC can be computed with factors other than costs, such as labor hours or labor costs or machine hours. Also, the costs can be total contract costs or a specific limited type of costs, such as direct costs only. 

Executive Insights

"Contractors must up their game when it comes to cybersecurity’s role in protecting them from financial fraud. Ransomware became the tool of choice for a $1 billion crime with the recent attack through WannaCry/ WannaCrypt. This exploitation impacted more than 200,000 computers in more than 150 countries. Additionally, with the proliferation of the internet of things, cloud storage and electronic banking, the risks of wire fraud and cyber breach continue to rise."

Atlanta and Chicago Make Renewable Energy Pledges

  The Atlanta City Council unanimously approved a pledge to commit the city to reaching 100 percent renewable energy by 2035. Municipal buildings must reach that goal by 2025. Atlanta is now the largest Southeastern city with a 100 percent clean energy goal, followed by St. Petersburg, Fla., according to Sierra Club. 


 

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Construction’s Cybersecurity Challenge
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A Small Team With a Big Heart for Service
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