Volume 5 - Number 5 | January 29, 2007 - Construction Claims Advisor

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You are here: Home » Volume 5 - Number 5 | January 29, 2007

Volume 5 - Number 5 | January 29, 2007

EDITOR'S NOTES | Issue 5-5: According to the most recent data available from the Bureau of Labor Statistics, the typical American household (calculated at 2.5 people) spends nearly $2,400 each year on entertainment. That’s 7.7 percent of the average household’s annual income. The same family spends another $2,600, or 8.2 percent, to dine out. From performing arts centers to museums, sporting arenas to amusement parks, it’s no surprise that nearly a sixth of our annual income is dedicated to leisure activities. With that investment comes the ever-present desire by entertainment execs to add more venues.

In this week’s cases, two contractors each vie for money allegedly due them on entertainment projects. In the first case, a subcontractor strikes out by failing to file proper paperwork. In the second, the property owner gets the last laugh when a judge concludes that the owner bears no financial responsibility to a contractor that proceeded on a renovation project without a signed contract.

Our Tips and Techniques feature by Larry True wraps up this issue. True introduces key elements necessary to help prevent claims and recover job costs.

ON THE MOVE: Find out who got hired and who got promoted in this new column. Want to see your company’s latest news here? E-mail it to editor@wpl.net.

WAIVER AND RELEASE APPLIED TO UNAPPROVED CHANGE ORDER REQUESTS: Unambiguous contract language provides the winning hit against a subcontractor that tries to collect on a lien for alleged extra work and delays on a baseball park project. The subcontractor should not expect the contractor or owner to coach it through the process of filing waiver and release forms during the course of the project.

CONTRACTOR CONFUSED REGARDING IDENTITY OF PROJECT OWNER: Owner confusion and property liens are no laughing matter for a contractor that proceeds with improvement work on an Atlanta comedy club without first securing a signed contract from either the project owner, who requested the work, or the property owner, who never authorized the improvements or participated in contract negotiations.