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Volume 4 - Number 35 | September 4, 2006

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Recent Issues

  EDITOR'S NOTES | Issue 4-35
According to a Department of Labor (DOL) report released in August, the amount of worker output per hour of work increased by a sluggish 1.5 percent in the second quarter. That’s down from a 4.3 percent increase for the first quarter of 2006. Factor in an annual increase of 4.2 percent for labor cost and it gives employers cause for concern—slowed productivity and increased labor costs add up to rising inflation.

When workers deliberately slow their productivity, it spells more than just lost profits for employers. Employers are tasked with proving an intentional slowdown, especially if it’s linked to a constructive acceleration claim, as in this week’s first case.

To learn more about how the DOL calculates productivity and labor costs, visit www.bls.gov/lpc/#news.

This week’s other issues include indemnity rights on a negligence and breach of contract case, a review of a book that belongs on every contractor’s shelf and the second half of our summary of the contract audit manual published by the Department of Defense.
  FAULTY COOLING SYSTEM HEATS UP INDEMNITY DISPUTE
Hanna Lee Blake By Hanna Lee Blake
A vague and ambiguous contract provision leads to a question of whether an architect can claim indemnity rights against a contractor for a malfunctioning cooling system that failed, in part, because of the architect’s own negligence and breach of contract.
  HOW TO GET PAID FOR CONSTRUCTION CHANGES BY STEVE PINNELL
Timeless in its teachings, How to Get Paid for Construction Changes by Steve Pinnell is a must-have book for every contractor’s library.
  THE DCAA AUDIT MANUAL’S TREATMENT OF DELAY CLAIMS
A contract audit manual designed for federal government contractors provides useful information to all contractors, not just those that pursue public projects. This is the second half of CCA’s review of the manual.
 
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