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Volume 7 - Number 28 | July 13, 2009

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Recent Issues

  EDITOR'S NOTES | Issue 7-28
Construction contracts sometimes establish not only a deadline for final completion but also interim completion milestones the contractor must achieve. If the contractor is failing to meet those milestones, the project owner may order acceleration of the pace of the work. An accelerated schedule usually entails increased costs - labor overtime is the most common. But, the contractor will not be entitled to additional compensation if the acceleration was necessary to meet contractually stipulated completion milestones.

In one case reported this week, a contract implied that a notice-to-proceed would be issued on a certain date. The contractor was required to submit a planned schedule of major activities based on that assumed start date. Notice-to-proceed was issued a month later than indicated, forcing the contractor to accelerate the pace of the work to meet interim completion milestones. The question then became whether the owner was obligated to extend the milestones in light of the later start date.

Other cases reported this week are a wage rate dispute and a mechanic's lien question. The Ohio Supreme Court had to decide whether off-site labor furnished in the custom fabrication of materials for a public works project was subject to the state prevailing wage statute. And, a California appellate court addressed the application of the state mechanic's lien statute to demolition work. Must something new be constructed following the demolition in order for a property improvement to occur?
  BOARD ADDRESSES MILESTONE COMPLETION DATES AND SUPERIOR SCHEDULING KNOWLEDGE
A contractor can maintain a claim for the government’s refusal to adjust interim completion milestones to reflect a start date later than what was indicated in the solicitation.
  PREVAILING WAGE APPLIED ONLY TO ON-SITE LABOR
Despite a statutory reference to labor “upon any material” used in a public works project, a state prevailing wage law applies only to on-site work. The statute does not apply to the off-site custom fabrication of material for a public project.
  LIENS FOR DEMOLITION CLARIFIED IN CALIFORNIA
Demolition work is covered by the state mechanic’s lien law only if it involves a “building.” But it is not necessary to construct something new on the property for the demolition to be an “improvement.”