Construction Archives - Page 3 of 5

TAT House Wins Architect Mag’s 2014 Annual Design Review Award

By Lynda

An expansive glass wall on the ground floor of the recently renovated TAT House opens onto a chic and spare outdoor living room. The third-floor of the house is wrapped in “an Ipe wood–framed rainscreen,” allowing “interior and exterior glass walls carry the sense of the outdoors throughout the interior.” We want to congratulate Santa Monica architecture firm fleetwood/fernandez on their beautiful design, as well as their clearly deserving win of Architect Magazine‘s top 2014 Annual Design Review Award.

Visit Architect Magazine‘s original post for more photos, elevations, and renderings of this beautiful project.

Shout-out Credit:

Alicia K. Igram, AAI, VP & Branch Rep
Design & Consulting Liability Specialist
IOA Insurance Services – Aliso Viejo, CA
Email: Alicia.Igram@ioausa.com / Phone: 949-680-1789

Architect Creates LEGO Detroit

By Lynda

After all the bad press Detroit has received in the last few years, it’s nice to see that the city continues to inspire architects. For Jim Garrett of Redford, Michigan, it has motivated him to pull out his childhood LEGO sets and spend months faithfully recreating scale models of his favorite Detroit buildings.

“Twelve of those buildings are replicas of real Detroit structures, including the Detroit Institute of Arts, the Detroit Public Library in Midtown and the Fisher Building in New Center. Most of his downtown Detroit buildings are on view at The Henry Ford this month. Even the old red sandstone Union Depot, which stood at the corner of Fort and Third until it was demolished in 1974, is on display.”

The 51-year-old Garrett has been known to clear out LEGO sections in toy stores whenever they go on clearance, but these days it’s easier to find what he needs on the internet. For these kinds of detailed projects, he suggests the site bricklink.com, “sells specialized pieces like arched windows in bulk.”

When constructing Detroit’s tallest Art Deco skyscraper, The Penobscot building, Garrett was relieved to find “LEGO made some grooved bricks that perfectly matched the detail on the actual building.”

“I bought almost the entire world’s supply at the time,” he said.

“It took eight months to erect the Penobscot’s 47 stories. The model is 9.5 feet to the roof and 11 feet to the tip of the red ball at the pinnacle.”

Donna Terek penned the original article for the Detroit News, and it includes a video of the exhibit which is worth a watch.

As Garrett wholeheartedly admits, “It’s my hope that people who aren’t familiar with Detroit will realize there’s more to Detroit than crime stories and bankruptcy. I’d like to think it will help them get an appreciation of Detroit’s architecture.”

Subcontract Termination: The right business decision?

By Lynda

Sometimes the grounds for termination are absolutely clear. And sometimes several legal options are available. But when preparing to terminate a subcontract, there’s one more question to ask: Is this the right business decision? We turn to Burns Logan’s Southeast Construction Law Blog for the answer.

The following is an excerpt from a September 2014 post on the blog titled Subcontract Termination: Not for the Faint of Heart:

After a few weeks of poor performance by the stucco subcontractor, my client and I sat down to determine all the possible avenues to resolve the issues. The first thing we did was pull out the subcontract which controlled the stucco subcontractor’s work. We wanted to be sure that the subcontract included all the necessary provisions to allow my general contractor client to remedy the situation. Some of the common default provisions in subcontracts include:

failure to prosecute the work promptly and with due diligence;
failure to prosecute the work in a workmanlike and safe manner;
failure to supply proper supervision;
failure to properly staff the job;
failure to supply materials and equipment of proper quality and quantity;
failure to promptly correct defective or deficient work;
failure to pay sub-subcontractors or suppliers;
failure to maintain the project schedule as directed by the contractor; and
failure to submit proper progress and completion schedules.

We found that this subcontractor had violated many of the standard default provisions in my client’s subcontract. Therefore, we felt we had the proper authority to issue notices of default.

Continue reading “Subcontract Termination: The right business decision?”

a/e ProNet’s Fall Meeting Kicks Off in Chicago

By Lynda

Dozens of a/e ProNet members from across the country are gathering in Chicago this week for the annual fall meeting. They will be joined by representatives from several top tier professional liability insurance companies and a few major design industry organizations, including the AIA, NSPE, and ACEC.

Over the course of three days, members will receive presentations from the following insurance carriers: Beazley, Ironshore, HCC, Victor O. Schinnerer, Axis, Catlin, Hanover, RLI, All Risks, Liberty, Travelers, Navigators and Arch. These presentations will help inform the specialist brokers of a/e ProNet about industry trends, policy language changes, new coverage opportunities, and the like. It will also give our members a chance to ask questions and make suggestions pertinent to their own clients.

Along with insurer presentations, there will also be ample opportunity for the brokers to network with one another, alerting the group to trends around the country and problem solving in the collective.

To open the week, the Board of Directors will meet, and to close, Kent Holland of Construction Risk will present to the membership on the second edition of a/e ProNet’s Risk Management and Contract Guide for Design Professionals.

Construction Observation: Important Risk Management Service

By Lynda

Construction observation is a powerful weapon for architects and engineers (A/E) in their risk management arsenal. Certain clients understand the benefits when A/E firms offer construction phase services. However, driven by slow economic conditions, many clients are asking firms to do more, with less, including reducing or eliminating construction phase services. Other clients decide they will administer the construction contract themselves or decide to use a third party instead of the A/E firm. Clients have also held the A/E to a higher standard of care when providing construction observation services. How do these actions affect A/E firms?… It significantly increases the A/E’s risk and liability exposures.

Construction Phase Risks

Details in design documents cannot anticipate every contingency that may occur during the construction phase. If the A/E firm of record is not retained to provide clarification of the plans and specifications the risk of misinterpretation of the contract documents increases. Bad decisions can lead to project confusion, delays, increased costs, disputes and claims between the owner and the A/E.

The exposure of the A/E is increased due to certain owners and contractors asserting that the designer has a similar responsibility of the contractor for discovering all defects on the project. Based on this distortion and unrealistic expectation of construction observation services, owners and contractors have stated the A/E should be a guarantor of the contractor’s work. These expectations dramatically increase the A/E’s standard of care and risks associated with construction phase services. Court decisions have ruled in Owners’ favor holding that the A/E has a duty to guard the owner against all non-conforming work on the project, although much of that work was completed when the firm was not present on-site. Members of the plaintiff’s bar continue efforts to hold the A/E accountable for this higher standard of care for construction phase services. Continue reading “Construction Observation: Important Risk Management Service”

How Does California Supreme Court Beacon Ruling Affect Architects?

By Lynda

The following is an excerpt from a recent Gordon & Rees LLP article entitled California Supreme Court Holds Principal Architects Owe Duty of Care to Future Homeowners:

On July 3, the Supreme Court of California published its decision in Beacon Residential Community Assn. v. Skidmore, Owings & Merrill. In short, the court concluded that prime architects designing residential buildings owe a duty of care to future homeowners even though they do not actually build the projects themselves or exercise ultimate control over their construction.

Of importance, Beacon involved a demurrer at the trial court level meaning that, on appeal, the Supreme Court was required to accept the facts pled in the plaintiff’s amended complaint as true. This included the allegation that the Beacon project’s designers provided their services “knowing that the finished construction would be sold as condominiums.” It also was claimed that the defendants played an active role throughout the construction process, including coordinating efforts of the design and construction teams, conducting weekly site visits and inspections, recommending design revisions as needed, and monitoring compliance with design plans. For their various services, the designers were reportedly paid $5 million. The plaintiff alleged that negligent design work resulted in several defects, including extensive water infiltration, inadequate fire separations, excessive solar heat gain, structural cracks, and other safety hazards…

Although not a total loss for the design community, Beacon will have the effect of expanding architects and engineers (A&E) liability to a broader spectrum of claimants and generally keep A&E defendants in lawsuits for longer periods of time.

For an explanation of the court’s decision, including a concise summary of the affects of the ruling on Architects and Engineers, visit the original Gordon & Rees post by attorney Dion N. Cominos.

Complex precedents like this are just one of the reasons why A&Es are best served by consulting specialist brokers about their Professional Liability insurance needs. Does your current professional liability insurance policy include pre-claims assistance? How about the latitude to choose your own council in the event of of a claim? Call your local a/e ProNet Broker and get answers to these questions today.

Are You Accepting Too Much Liability on Your Construction Project?

By Lynda

The following is a re-post from the Southeast Construction Law Blog:

Contractors, subcontractors, and A&E firms all face differing levels of liability on construction projects. Managing that exposure is a key to maintaining profitability and ensuring your business is protected.

One issue I consistently see in my practice is companies taking too much liability for their scope of work on a project. For example, what should the liability of a subcontractor be who has a small $25,000 subcontract on a $15 million project? Should the subcontractor be liable for any and all damages?

Many subcontract agreements state that subcontractors are responsible for “any and all costs” caused by a subcontractor’s delay or interference with any portion of the work. While each party should be liable for damages it causes, this determination is never as clear as it seems.

General contractors (and sometimes owners) often control the timing, means, and methods of how a subcontractor performs its work. In those situations, it is difficult for me to explain to a subcontractor that it is liable for everything it does on site. Even so, many subcontractors’ feet are held to the fire for delay costs in the hundreds of thousands or millions of dollar range when their contract was initially very small.

Architecture and engineering firms face a similar dilemma. Many times A&E firms are brought into lawsuits in the millions of dollars when their scope of work may have been small. I have seen a civil engineer sued for $12 million when it performed a $1,600 staking job on a project.

In addition, A&E firms face a different challenge. Even if an architect or engineer prevails on the claim, the A&E firm has likely spent thousands of dollars in attorney’s fees, all chargeable to the A&E under the deductible in the Professional Liability Insurance policy. Continue reading “Are You Accepting Too Much Liability on Your Construction Project?”

Wikihouse: Welcome to the World’s Biggest Design Team

By Lynda

What if, instead of architects creating buildings only for those who can afford to commission them, regular citizens could design and build their own houses?

This is the concept at the heart of Wikihouse, an open source construction kit. With this tool, just about anyone can build a house, anywhere.

Alastair Parvin: Architecture for the people by the people

[youtube http://www.youtube.com/watch?v=Mlt6kaNjoeI]
In this fascinating TED Talk, Architect Alastair Parvin explains his vision for 21st century architecture and design: With the prevalence of open source software, 3-D printers, and other technological advances, the focus of the design industry may now shift from “thinking big” to “thinking small.” Challenging the effectiveness and affordability of one-size-fits-all.

According to Parvin, the stars have aligned to allow us a new industrial revolution, one founded on the democratization of production. Watch as he gives us a one-day-build house, compares citizen-led urban development to the barn-raising cultures of 19th century societies, and evangelizes for open source pioneer Linus Torvalds‘s philosophy: Be lazy like a fox.

How does this strike you? Is it plausible? Practical? Do you think the IKEA-fication of architecture and construction is a good idea or a bad one? Leave us a comment!

MORE: The 10 Most Inspirational TED Talks for Architects

Commercial Crime Coverages for Architects & Engineers

By Lynda

Spring is in the air, and optimism surrounding the construction industry is at a new high!

We don’t want to kill the buzz, but this is as good a time as any to remember that your design firm isn’t impervious to crime-related loss or damage. Your insurance policy can (and should!) include a few specific coverages to protect you against things like Employee Dishonesty, Burglary, and Computer Fraud.

The following is an excerpt from our Typical Coverages for Design Professionals, and we hope it will educate you and give you some peace of mind:

COMMERCIAL CRIME COVERAGES

Commercial Crime Coverages include several separate insuring agreements. Some or all of these individual coverages may be selected, depending on the individual needs of a design firm:

Employee Dishonesty: This coverage pays for loss sustained by the insured employer up to a specified amount, caused by a dishonest act of an employee or employees covered under the policy. This includes dishonest acts of the embezzlement of money or property, including inventory, owned by the insured.

Forgery or Alteration: This coverage pays for loss sustained by the insured employer for forgery or alteration of checks (including blank checks) issued by the insured. Coverage may be extended to include checks forged or altered by employees as well as others. Continue reading “Commercial Crime Coverages for Architects & Engineers”