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- December 1, 2009
- In This Issue:
- Industry Spotlight
- Construction Disputes
- Construction Delays
- Construction Defects
- Construction Costs
- Construction Management
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Corporate Headquarters
One Riverway, Suite 2350
Houston, Texas 77056
713.626.2525
713.626.2555 (fax)
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Construction Disputes
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Contract lawsuit could cost La Crescent $1.79 million
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LaCrosse Tribune
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"The city of La Crescent has been ordered to pay a $1.79 million
breach of contract judgment to a construction company hired in 2007 to
install a sewer line under the Mississippi River...."
"La Crescent declared MinnComm in default after the company failed to complete the 3-mile sewer and water main extension."
"MinnComm made two unsuccessful attempts in September 2007 to bore
under the main channel of the Mississippi River. MinnComm stated...it
notified the city in November 2007 the delays were due to obstructions
not identified in the original plan."
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Connell Resources suing county for breaches of contract
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Steamboat Today
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"The lawsuit...claims numerous breaches of contract....The work was
part of the $16 million second phase of the [Yampa Valley Regional]
airport's multiyear improvements."
"....lawsuit...contains a 68-point list of allegations including
'defective specifications'...that 'caused delays, lost productivity,
and additional costs for labor and equipment and independent materials
testing.'"
"...[Routt County attorney John] Merrill said the lawsuit could seek a wide range of damages - as much as $1.4 million."
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Construction Delays
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Roman Abramovich frustrated over delays to superyacht Eclipse
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The Telegraph
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"The Eclipse, the biggest and most luxurious private yacht ever built, was due to be delivered on December 22 this year."
"...representatives have held a series of anxious meetings with the
managers of the German shipyard which has built the superyacht...it is
unlikely to be ready until some time in 2010."
"It has two helipads, two swimming pools, 24 guest suites, each of
which has its own 6ft cinema screen, and will need a crew of around
60."
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Deutsche Bank Drowning in Vegas on Costliest Bank-Owned Casino
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Bloomberg.com
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"Deutsche Bank AG's Cosmopolitan Resort & Casino complex in Las
Vegas, already the most expensive debacle in the city for a single
lender, is now two years behind schedule, $2 billion over budget and
under water - literally."
"...requires 24-hour pumps and containment walls after workers hit
an aquifer....It's another challenge for a project whose delays and
redesigns have sparked lawsuits from condominium buyers and sales
agents...."
"The current projected total cost of the project, according to analysts: $3.9 billion...."
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In a hole, Amsterdam tunnellers just keep digging
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Reuters
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"Years behind schedule and so over-budget officials have abandoned
hope it can recoup the cost of construction, the new metro project is
wrecking historic buildings as it cuts through spongy sand and water
more than 30 metres below sea-level."
"Built to house a rapid transit system...for now the subway is a
gash through the city and risks joining history's great construction
fiascos."
"Costs incurred so far on the tunnel already total 1.1 billion
euros...an additional 600 million would have to be paid in fees if
contracts were cancelled and the tunnel abandoned...."
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Construction Defects
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City found at fault in tennis court defects case
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Las Vegas Sun
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"...arbitrators have found that Las Vegas managers 'knew from the
beginning' that their plans for the Darling Memorial Tennis Center were
defective...."
"In a 2-1 decision, which appears to resolve the most expensive
arbitration in Las Vegas government history, the panel found that the
city owes...about $2.13 million."
"...As of August the city had paid more than $3.3 million...to
handle the case. APCO has spent more than $4 million in legal fees...."
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Construction Costs
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Audit shows cost overruns and mangled management of Oregon Zoo projects
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The Oregonian
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"The Oregon Zoo's construction projects in the past five years have
been plagued by cost overruns, delays and disjointed management...."
"...The nine projects planned under the bond measure are 'ambitious and complex,'...."
"'Project management was handled differently for each project and
was highly dependent on the project manager. This resulted in the zoo
taking some unnecessary risks, exceeding its budgets, and not knowing
when projects were off-track.'"
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Construction Management
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Competing contract forms cause tension
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Daily Journal of Commerce
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"For more than 100 years, American Institute of Architects documents
have helped establish ground rules between owners, architects and
contractors on projects...."
"The AGC and other contractor groups now support a competing
contract form, called ConsensusDOCS. The groups are working to
challenge the preeminence of the AIA's A201 document, claiming the most
recent version shifts too much risk away from architects and places it
on contractors."
"...The newest version of the A201 pushes contractors to bid for a
worst-case scenario, rather than bid conservatively and then negotiate
a change in scope if the worst arises."
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Shell's Gbaran project set for 2010 commissioning
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Next
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"Nigeria's quest to achieve increased gas utilisation will get a
boost with the planned 2010 commissioning of the...Gbaran-Ubie
integrated oil and gas project...."
"The project is one of the largest and most important oil, gas, and
power projects in the country. It is aimed at reducing routine gas
flaring in the oil-rich Niger Delta by harnessing the associated gas
produced with oil...."
"...In its first phase, the project will drill 18 oil and 15 gas
wells and build a central processing facility to harness oil and
gas....will deliver 100 million standard cubic feet per day of gas...."
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Korea Gains as Nuclear-Plant Bidder
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The Wall Street Journal
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"South Korea is emerging as an unexpected contender in the global
race to build nuclear-power plants, turning up as a finalist for one of
the industry's most-coveted projects."
"...contract that could be worth as much as $40 billion to build and
run the Arab world's first nuclear-power plants. U.A.E. officials could
award the contract as early as the next few weeks."
"Analysts say that the trajectory of the Korean nuclear industry could depend on the outcome of the U.A.E. contract."
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Greece to retender major construction projects
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Reuters
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"Greece plans to re-launch tenders for two major construction
projects to expand an Athens tollway and build an airport by the middle
of next year...."
"Funds of about 7.5 billion euros, mainly money from the European
Union, are expected to pour into Greek infrastructure projects,
including road concessions and airports, by 2014."
"Construction accounts for 11 percent of Greece's GDP and new
building projects are seen boosting Greece's ailing economy, which will
fall into recession this year for the first time since 1993."
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Industry Spotlight
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World Famous Skyscrapers Get Retrofits
Emulating New York's recent Empire State Building retrofit,
Chicago's Willis (formerly Sears) Tower is planning a major "green"
renovation to the 1973-constructed building. The $200 million project
is one example of how large commercial buildings are using public and
private funds for eco-friendly enhancements. Read on to learn about
other high-profile retrofit projects and the various programs to
finance them.
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Chicago's Willis (formerly Sears) Tower growing greener
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The Seattle Times
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"Beardsley, a senior architect...in Chicago, is managing a $200
million to $300 million project to 'green' the tallest building in the
Western Hemisphere."
"In design plans, the 'green roof' project would be expanded to the
multiple roofs, along with wind turbines and solar panels...."
"The real energy savings will be culled from the 16,000 windows that
will be replaced and from lighting automation and reduction."
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Big Pink, other high-rises, go green to compete
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The Oregonian
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"...owners of large office buildings are spending hundreds of thousands of dollars on green building retrofits...."
"...green-building certification is becoming a new standard required
by companies looking to rent office space....Any such competitive
advantage is crucial for office building owners, who struggle against
an 11.1 percent vacancy rate across the region...."
"The Big Pink switchover cost about $1.5 million, about half defrayed by grants and energy trust rebates...."
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Rialto to join green empire
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Herald Sun
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"Rialto owner Lorenz Grollo confirmed his firm Equiset was planning a big environmental retrofit of the Melbourne landmark."
"'The question for us is to investigate as much as we can possibly
can, see what the world's best practice is and look at the Empire State
and other major buildings around the world to see what they're doing."
"Mr Grollo is part of a 22-person Victorian industry delegation
touring sustainable buildings in New York, San Francisco and
Chicago...."
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New York Passes Municipal Clean Energy Loan Legislation
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The Gov Monitor
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"The legislation allows [New York] municipalities to leverage
federal funds...to finance energy efficiency retrofits and renewable
energy systems...."
"...Vice President Joe Biden announced $454 million...to support
PACE pilot programs as part of his 'Recovery through Retrofit' plan.
Applications for the funding are due in December and awarded on a
competitive basis...."
"...PACE bonds finance energy efficiency upgrades, such as double
insulated windows, as well as the installation of clean energy
technologies, such as solar panels or geothermal heat pumps."
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Making commercial buildings greener, environmentally friendly
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Pittsburgh Post-Gazette
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"Retro-commissioning has been an emerging national trend for the past five or six years...."
"...The Economic Recovery and Reinvestment Act...created the Energy
Efficiency and Conservation Block Grant Program, allocating $3.2
billion to local governments to fund energy efficiency initiatives,
including retro-commissioning."
"The package also included $4.5 billion specifically for converting
government buildings into 'high-performance green buildings.'...."
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