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Showing posts from May, 2009

Litigation-I Win, You Lose vs. Mediation-Win/Win

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  Litigation is a zero-sum game.  It destroys relationships and fosters enmity between the parties.  Parties rarely walk away happy.  Even if they win, the expense of litigation is enormous, and collecting on judgments is difficult. Disputes ultimately resolve, but the focus on winning at any cost can lead to prolonged legal battles.  Living with a lawsuit causes ongoing stress, which can distract you from your business and even have an effect on your health. In a courtroom, the final decision lies with a judge or jury who may not fully grasp the complexities of the case. Parties relinquish control over the outcome, potentially leaving them dissatisfied with the final judgment. Mediation has the opposite effect.   Rather than polarizing people, it enables the parties to attack the issues and not each other.     The process promotes open communication, collaboration and problem-solving, which enables parties to actively participate in crafting mutually beneficial solutions.   It res

Toronto to Mandate Green Roofs for Most New Construction

This article is relevant for Massachusetts builders, because it reminds us to thoroughly research green options and consider whether they will be worthwhile in the long run: http://www.greenrealestatelaw.com/2009/05/toronto-to-mandate-green-roofs/

SolarMagic Boosts Performance For Shaded Solar Arrays

Here's an interesting article on how to improve the performance of your solar heating system. http://viigo.im/IkF

Planning for Aging-in-Place Up 10%, Remodelers Say

From the National Association of Home Builders: http://www.nahbmonday.com/renew/issues/2009-05-27/7.html Click the link above for the whole article, but here is some interesting information: The aging-in-place modifications most frequently purchased by home owners, according to the remodelers survey, include: Adding grab bars — 78% Installing higher toilets — 71% Upgrading to a curb-less shower — 60% Widening doorways — 57% Building ramps or lower thresholds — 45% Enhancing lighting and task lighting — 45% NAHB’s survey also indicated that consumers are becoming increasingly aware of aging-in-place and universal design options. Eighty-four percent of the remodelers said that home owners have at least some knowledge of universal design solutions

Green Building and the Surety

Read this post to learn about surety bonds and green construction contracts: http://konstructr.com/guest-post-by-mark-rabkin-green-building-and-the-surety/

Solar Panels for Rent for Residential Construction

This article was in yesterday's Boston Globe: Sun for rent Boston Globe It's an old energy problem with a new solution: After decades of facing prohibitively high costs to install solar panels, Massachusetts residents will be able to lease the panels for a tiny fraction of their upfront cost. Beth Daley May 24, 2009 --> Sun for rent State hopes affordable leases will make panels an electricity option for more homeowners By Beth Daley, Globe Staff May 24, 2009 It's an old energy problem with a new solution: After decades of facing prohibitively high costs to install solar panels, Massachusetts residents will be able to lease the panels for a tiny fraction of their upfront cost. Instead of paying $25,000 or more to buy solar panels, homeowners will have to shell out only about $1,000 to install the energy collecting devices on roofs. The companies involved in the leases say most homeowners will be able to recoup the initial cost within seven years through electricity s

CPSC announces recall of ABTCo., Veranda, and WeatherBest Composite Decking and Railings

This is from the Consumer Reports blog: The U.S. Consumer Product Safety Commission today announced the recall of 48 million linear feet of ABTCo., Veranda, and WeatherBest composite decking and railings. The materials, made by Nashville-based Louisiana-Pacific, can prematurely deteriorate and break (see photo), posing a serious risk to anyone on a deck made of the recalled decking and railings. To date, Louisiana-Pacific has received reports that 37 decks have broken, causing 14 injuries that include a broken wrist, a sprained ankle, and minor lacerations and bruises. The recalled products were sold at the Home Depot and building-product dealers nationwide from January 2005 to August 2008. Colors include Tuscan Walnut/Chestnut, Driftwood Grey/Greystone, Pacific Cedar, and Western Redwood. Veranda is made by several companies; only Louisiana-Pacific-made Veranda has been recalled. If you own a deck made of the recalled materials, contact the manufacturer for a free inspection; call 888

Contractors Must Provide Pamphlet About Lead-Based Hazards

This comes from the Frost Brown Todd blog-Construction Law News Failure of Contractor to Provide Disclosure Goes Over Like a Lead Balloon When performing remodeling and renovation projects contractors, are faced with a number of challenges. Problems with owners, subcontractors, material providers, architects and designers frequently present the lion’s share of issues on a project. Given the scope of problems that can arise on a project, it is easy for contractors to become so focused on issues like the ones identified above, that they fail to stay current on the laws, rules and regulations governing the work they perform. Often, the result is that the contractor is cited by a government or regulatory agency and fined for its failure to comply with a law the contractor knew nothing about. A new rule promulgated by the Environmental Protection Agency ("EPA") is an example of the type of regulation contractors must be aware of and comply with or face a large fine. In 2008, the E

When the Builder is Worried About Getting Paid

Let's face it. These are hard times economically, and even when an owner starts a project, at times the contractor might have legitimate concerns about getting paid. An owner will not want to pay a builder ahead of the work, but the builder will want to know that there are available funds for completion of the project. Here is a contract clause for dealing with that issue: NO ACCELERATION OF PAYMENTS BUT ESCROWING ALLOWED: The Contractor may not require that payments be made in advance of the times specified in the Payment Schedule for the reason that he deems himself or the payments to be insecure. If, however, the contractor deems himself to be insecure by reason of the following: late payments or owners refusal to pay according to payment schedule or notice of the owner’s insolvency or bankruptcy. The Contractor may require, as a prerequisite to continuing the work described herein, that the balance of payments under this contract that are in control of the Owner(s), shall be

The Punch List Contract Clause

One of the ways to prevent a "neverending" punch list is to clearly define in your contract what constitutes punch list items and what does not. Here is one sample clause: 1. PUNCHLIST: Thirty-day break-in period. During the first thirty (30) days after the dates of Substantial Completion, the Owner may note minor malfunctions or defects such as sticking doors, nail pops, etc. The Owner should maintain a list of these malfunctions and defects as they occur, and must submit in writing not later than forty-five (45) days after the date of substantial completion. All defects, which are determined to be covered under this warranty, shall be corrected within sixty (60) days. Any defect or malfunction which occurs after the thirty (30) day break-in period shall be classified as a “Latent Defect.” 2. LATENT DEFECTS: A latent defect is defined as a malfunction or defect in warrantable items, which becomes apparent after the thirty (30) day break-in period, but before the end of the w

More On Contract Clauses-The Warranty

The warranty section listed below is quite long. In some ways, this is unfortunate. The fact that contractors have to be so concerned about spelling out exactly what is or is not included in a warranty seems to go against the notion that an Owner and a Contractor should have a trusting relationship. However, it is better to make sure that there is a clear understanding between the parties about which items will be covered if a problem arises. Here is a sample warranty clause: Section Seven: Limited Warranty Contractor guarantees that the Work will be constructed in a good and workmanlike manner and it will guarantee the Work against defects in workmanship and materials for a period of one (1) year from the date of its completion. Warranty work will be completed within sixty (60) days from the date of receipt of written request from the Owner. Please note that this Limited Warranty specifically excludes consequential damages. This warranty is extended to the Owner. Contractor h

Tax Credits Make Geothermal Heat Pumps More Affordable

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I recently took a trip from St. Louis to Greenville, Illinois to visit Enertech Manufacturing, LLC, a GeoComfort distributor.I had a meeting with owner Steve Smith to discuss our presentation at the upcoming Green Building Conference in Dallas. When I arrive, Steve showed me around his offices. We walked into the warehouse, where I saw hundreds of geothermal HVAC units still wrapped in cellophane and I thought - oh no, another casualty of the housing downturn.Not this time.The units had just arrived from Enertech’s manufacturing plant in Mitchell, South Dakota and most were waiting to be picked up for installation. There is a bright spot in the current housing market. And it’s called geothermal – using underground loop systems to take advantage of the earths near constant temperature to heat and cool the home.As a Certified Green Building Professional, I’ve often tried to convince my clients to consider geothermal. With costs twice as much as conventional HVAC systems, most clients wer

The Endless Punch List

In Massachusetts, a homeowner does not have to make the final payment until the work is done to "the mutual satisfaction of the parties." What is a contractor supposed to do when the homeowner is never quite satisfied, or the punch list of items to be completed never seems to end? I have seen this situation occur with my contractor clients, where homeowners take advantage or have unrealistic expectations about when a project is complete. How can contractors avoid this problem? 1. Start with a a good contract that spells out the work to be done and the materials to be used, IN DETAIL! 2. Make sure that all change orders are in writing, and adjust the completion date accordingly. Make sure both the contractor and the homeowner signs off on all change orders. 3. Designate in the contract who the decision makers are and make sure they sign the contract and all of the change orders. 4. When the job is complete, have the homeowner create a punch list and discuss each item in detail

Save Money on Utility Bills with Radiant Roof Sheathing

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It's one of the best kept secrets to helping home owners live more comfortably and save money on their utility bills - radiant roof sheathing.But let's not keep quiet about it anymore!Radiant roof sheathing is plywood or OSB (Oriented Strand Board) with a thin layer of aluminum on one side to help reflect the suns radiant rays.Radiant roof sheathing helps your attic stays cooler, your home stays cooler and that leads to a more comfortable living environment and lower utility bills. The product is Energy Star-rated and according to its website, "can lower roof surface temperature by up to 100-degrees" and "can reduce peak cooling demand by 10-15 percent."Radiant roof sheathing used to cost more than standard plywood/OSB, but I recently installed the product on a new home we're building near St. Louis for the same cost as plywood. Lumber prices are down and product competition is up, making radiant roof sheathing an affordable option.But, you don't hav