Industry Spotlight

Interface Consulting News:

  • Interface principal consultants attend 2014 Construction SuperConference in San Francisco, California.
  • Interface sponsors 2014 Houston Bar Association Holiday party held annually at Brennan's.
  • Interface sponsors the Construction Law Section of the State Bar of Texas Basics Course, at The Westin Oaks at the Galleria.

Construction Litigation

Visalia fighting lawsuit to halt construction contract

Visalia Times-Delta

"Plans to expand and renovate Visalia's wastewater treatment plant may not be delayed long if a judge sides with the city in a lawsuit seeking to suspend plans to award a construction contract for the project.... Balfour Beatty Infrastructure seek(s) a temporary restraining order prohibiting Visalia from awarding a $92.3 million contract to renovate the plant to another company, W.M. Lyles Co."

Dispute with contractor stings Charlton with $900,000 bill

Times Union

"The cost to build Charlton Town Hall grew by nearly $900,000..., when a Saratoga County jury sided with a contractor and against the town in a long-running legal dispute over construction of the municipal building. A state Supreme Court jury...unanimously decided the town wrongly terminated Schmidt and Schmidt Construction of West Charlton, and owes the company $894,595 in damages. The decision came after seven years of legal wrangling."

Construction Disputes

Construction firms say downtown Quincy redeveloper owes them

The Patriot Ledger

"The managing partner at Street-Works Development says Twining Properties, the newest partner in the Quincy Center redevelopment project, has paid or is in the process of paying about $1.9 million that construction companies say they are owed....J. Derenzo Co. and its subsidiary JDC Demolition Co.,... filed 'statement of account' forms with the Norfolk County Registry of Deeds...reporting that Merchants Row LLC owed them $1,889,600."

Disputes over Prague tunnel Blanka might head to arbitration

Prague Daily Monitor

"Disputes over the completion of tunnel Blanka could result in arbitration proceedings and a following settlement agreement on allegedly invalid contractual relations between Prague and builder Metrostav....The two sides should agree on the price of the construction project in the arbitration proceedings....[T]he agreement would enable Prague to pay in a legal way for the project's extra work done outside contract terms."

Constrution Defects

Experts raise new doubts about essential Bay Bridge rods

The Sacramento Bee

"Yun Chung, a retired engineer and metallurgist, read the official report explaining why massive, high-strength steel rods on the new San Francisco-Oakland Bay Bridge broke last March and was stunned then alarmed. At first glance, Chung said...he saw obvious errors some typographical, others that confused basic terminology. Digging deeper, he discovered more important problems. He concluded that the analysis defied metallurgical science and common sense."

Construction Delays

Lawmakers Frustrated by VA Construction Delays

Military.com

"Four years after the General Accountability Office recommended changes to the Department of Veterans Affairs that would reduce potential cost increases and schedule delays to major construction projects, there is still some question about how far the VA has come in adopting them."

Enbridge pipeline construction to continue into next year after permit delays

NWI.com

"The massive pipeline replacement is believed to be the second biggest construction project in Northwest Indiana in recent years, after the $3.8 billion upgrade to the BP Whiting Refinery....Work was supposed to be completed by the end of the year, but the placement of the pipe into the ground will not be finished until at least February because of delays in obtaining all the needed permits...."

Construction Costs

Sharply higher cost estimate puts NexLube construction on hold

Tampa Bay Times

"Construction of a new $120 million oil recycling plant at the Port of Tampa was suddenly halted last month because 'the costs estimated for plant completion have increased to more than 100 (percent),'....NexLube Tampa LLC also said...that it temporarily suspended construction to 'evaluate its options due to the substantial increase in projected costs.'"

Vikings offer more cash as stadium costs climb; new subcontractors named

Minneapolis / St. Paul Business Journal

"Mortenson Construction has agreed to a guaranteed maximum price of $763 million in construction costs for the new Minnesota Vikings stadium, setting the stage for work to begin on the project next week. That's higher than the original estimate of $738 million, but still fits within the broader $975 million total for the entire project....Costs climbed due to higher-than-anticipated subcontractor bids amid an improving construction climate."

Construction Management

Shoddy construction work costs millions, but city not trying to recoup money: auditor

Ottawa Citizen

"Engineers and designers working on city construction projects too often get away with sloppy work because the city doesn't pursue them for the costs of cleaning up their mistakes....[T]he city's supervisors make change orders that are genuinely needed because the designer made mistakes, but then nobody goes after the design firm for the cost. Sometimes it happens, sometimes not. Even if the city only got reimbursed for the contractor's markup on the work, that would still be worth $1.2 million a year."

Pioneering Offshore Wind Project Faces Deadlines

Associated Press

"...[A] project off the Massachusetts coast that aims to be the nation's first offshore wind farm must reach fast-approaching benchmarks or risk missing out on hundreds of millions in critical funding. To qualify for a tax credit that would cover a major portion of its capital costs, Cape Wind either must begin construction by Dec. 31 or prove it's incurred tens of millions of dollars in costs by then. Also, a $200 million investment...is conditioned on whether developers can fully finance the rest of the project by year's end."

Construction Methods

United States green construction arms race heats up

Daily Commercial News

"LEED, the longstanding king of green construction and renovation projects, has become a de facto brand in cities such as Portland, Ore., where sustainable growth has been the rage for years. But that could change as legislation and executive orders in several states have all but banned Leadership in Energy and Environmental Design from public contracts, and a new system known as Green Globes has emerged and marketed itself as a simpler, less expensive alternative."

World's Tallest Prefab Building Leads Modular Boom

DNAinfo New York

"Many local developers are seizing on modular housing as a way to get projects completed more quickly and efficiently.... 'You increase the speed of construction and decrease the amount of anguish...The allure of prefabrication is you eliminate that mess of 20 different trades interfacing at different times. So, the thought of having 80 percent of the building arrive in finished condition is attractive.'"

Industry Spotlight

Games On: Olympic Construction Progresses for Future Host Cities

The 2014 Winter Olympics will be on everyone's mind in February, and host city Sochi, Russia, has all hands on deck in order to finish construction projects before the games. Although the city is cutting it close, Sochi's construction management issues are nothing compared to the construction issues plaguing Rio de Janeiro's 2016 summer games deadline. Other Olympic city hosts, who have either secured their place or are in the running, are all in the processes of building new stadiums, modernizing infrastructure, or securing construction financing. Read on to discover how future host cities like Gangwon, South Korea; Tokyo; and even Ashgabat, Turkmenistan, are getting in on the Olympic construction craze.

Olympic officials to check on construction in Sochi, Rio de Janeiro

Los Angeles Times

"The Sochi Games are set to begin in less than two months. While the competition venues are ready, other preparations remain to be completed...."There is still a lot to do with regard to infrastructure, accommodation and other issues...But we are very confident that everything will be in place and that we will have an excellent stage for the greatest athletes of the world."

Olympics-Rio has no time to lose says Brazil-bound IOC boss

Reuters

"'We have to realise that there is not a single moment to lose, that every effort has to be made every day to bring the construction of Olympic sites and infrastructure forward," said IOC president Thomas Bach....Rio Games organisers have been repeatedly urged to speed up progress as the country struggles to prepare...."

Gangwon Governor Choi talks about the upcoming 2018 Winter Games and state preparations

Korea IT Times

"Major projects for the 2018 PyeongChang Winter Olympics, including the construction of six stadiums as well as other infrastructure, will begin by March 2014 for completion in October 2016....'A total of 699.3 billion won, including 524.5 billion won from the state budget, will be poured into the preparation projects for the PyeongChang Olympics over the coming four years.'"

Japan's Latest Stimulus Going Largely To Construction Firms For 2020 Olympics, Disaster Recovery And Prevention

International Business Times

"Japanese Prime Minister Shinzo Abe and his cabinet approved a $53.5 billion...stimulus package...that would siphon money to the country's lowest income earners as well as construction firms to repair aging roads, bridges and tunnels, improve the earthquake-resistance of schools, and renovate Tokyo's National Olympic Stadium for the 2020 Olympic Games, among other projects."

Reclusive Turkmenistan Opens Doors; Begins Construction of Olympic Dreams

GamesBids.com

"An impressive $5 billion Olympic Park has quietly risen in the Turkmenistan city of Ashgabat, a complex that could support the Asian Games and be leveraged for a future Olympic Games....Ashgabat must gain experience and further develop before an Olympics enters into the picture, but it is clear that change for this developing nation is already underway."

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