Articles

When is a Design Faulty

by John R. Singleton, Q.C., Singleton Urquhart Legal Counsel

 

Those undertaking design-build projects must become educated to the potential risks that they face in taking on the role as the “design-builder”, and being the sole contract holder to an owner with responsibility for both construction and design. Whilst the common insurance products available for project address many of the identified physical perils to a project, there are certain specific insurance policy exclusions which should be reviewed and understood. A common focus is upon the “Faulty Design Exclusion” which is found in many property insurance policies, and similar Builders Risk insurance policies. A common Faulty Design Exclusion will exclude coverage for: “cost of making good faulty or defective workmanship, material or design…” More...

Design-Builder Contractors and the need for Professional Liability Insurance

by Nolan Heuchert, Wylie-Crump Limited

 

There was a time when there was a clear distinction between the contractors who performed the “work” and the architects and engineers who performed the “professional services.” Their respective roles and responsibilities were relatively clear and separated by distinct contractual arrangements. Today, more often than not, the general contractor of the past is today’s construction manager or design-builder. The owner’s project architects and engineers may now be the contractor’s design consultant or joint venture partner. More...

2010 Important “BIM-formation”

by Paul Stocco Partner, Brownlee LLP

Technology has had a tremendous impact on construction. Each new technological advance in construction machinery and construction products influences how a construction project will look once completed. Along with changes to how construction projects are built has come a change in how construction projects are designed. Building Information Modeling (BIM) promises to revolutionize the way construction projects are conceptualized, designed, constructed and ultimately operated/maintained. This new and exciting design model has many advantages, but as with any innovation, there are risks. More...

Hands Off My Holdback

by Paul Stocco Partner, Brownlee LLP

Article prepared with the assistance of Kristjana Kellgren, Associate, Brownlee LLP.

These are turbulent times for the construction industry. While there are signs of a modest economic recovery, there are also many warning signs about how fragile the recovery really is. Some of the foremost concerns of the industry are the availability of credit and maintaining a positive cash flow. If contactors are experiencing difficulties in operating their businesses, this has an impact on the industry as a whole--work on projects can start to slow down, contractual defaults can increase, and the spectre of contractor insolvency looms. Another development often seen in times of economic slowdown is the increased activity of the Canada Revenue Agency (“CRA”) More...

Coverage Under CGL Policies for Construction Defects

by John R. Singleton, Q.C.

Singleton Urquhart Legal Counsel

Much has been written and said by both legal commentators and the judiciary about the coverage available to general contractors and their subcontractors under general liability policies for claims brought against them for “property damage” on projects they have worked on. The issue has arisen not when there are claims for “property damage” to property external to the project in question, but when the claim is for the cost of repairing portions of the project itself as a result of faulty workmanship or materials supplied by a general contractor or its contractors. More...

Requests for Proposals for Design-Build Projects: Identifying and Mitigating Select Legal Risks

by Denis Chamberland
Aird & Berlis LLP

It is widely accepted that low-bid procurement – which relies on a single measure, cost – is not the optimal procurement methodology for design-build projects. Owners who prefer such a commodities-based approach to competition fail to take advantage of several attributes that contractors may bring to the equation, such as quality and performance. As a result, the Request for Proposals (RFPs) has become the procurement methodology of choice for services as complex as design and construction. Indeed, most owners welcome the opportunity to review proposals that are based on their own distinctive needs, and where they are more likely to arrive at the best combination of value. (More...)
 

Design-Build Problems Design Growth

by Steve Panciuk, P.Eng.,
Assistant Vice-President, Construction Claims
Encon Group Inc.

This Bulletin was prepared following identification of a source of new claims being reported involving design-build projects where the contractor is claiming costs associated with “design growth.” These claims develop as a result of design changes between preliminary drawings and construction drawings. The Bulletin deals with the contractor-led (consultant contracts with contractor) guaranteed maximum price design-build projects. It is intended to assist engineers/architects avoid, or at the very least reduce, the extent to which they find themselves exposed to such claims.
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Employee Fraud: Keeping the "F" Word Off Your Construction Site

by David Miachika, Ross McGowan and Robert Dawkins
Borden Ladner Gervais LLP

What is Fraud?
Fraud is one of those words that all people seem to know and use but few seek to clearly define. It encompasses is a broad category of deceptive behaviour designed to benefit the fraudster, or a third party, to the detriment of the target of the deception. Its scope is limited only by the ingenuity of people looking for the easy dollar. More...

Sustainability – Implications for Design Professionals

by Derek Holloway
Senior Vice-President, Architects and Engineers
ENCON Group Inc.

There is a growing trend toward the construction of “green” or “sustainable” buildings. While to date most of these buildings have been constructed for public sector clients as models for others to see, or for private sector companies wishing to demonstrate their corporate social and environmental responsibility, there is some momentum for the expansion of the sustainability movement. More...

Project Specific Professional Liability For Design-Build Projects

by Simon Fenn
CDBI Risk Management Committee Chairman 2001

On a typical design-build project, there is no shortage of professional liability insurance. Many times, perhaps more so in the USA than in Canada, the contractor, the design firm, the design sub-consultants and some sub-contractors all carry professional coverage. It may seem everyone is protected in the event of a loss. More...

 

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© Canadian Design-Build Institute 2011