Are Project Owners Misusing Convenience Terminations?

[Julian]

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From: "Construction Advisor Today" <ma...@constructionpubs.com>
Date: Feb 19, 2010 7:29 AM
Subject: Are Project Owners Misusing Convenience Terminations?
To: <corec...@gmail.com>

February 19, 2010 — Weekly Update     Are Project Owners Misusing Convenience Terminations? A project owner’s right to terminate a contract for the owner’s convenience is a vital tool. A termination without cause gives the owner flexibility to respond to contingencies such as lost project financing or changing market conditions. The contractor, who was not in default, is compensated for work performed prior to termination. The most common contractual formula is cost plus profit, along with settlement costs such as subcontractor termination, demobilization and other contract close-out costs. While termination for the convenience of the owner is a legitimate contract right, it is sometimes misused by project owners. A partial termination may price out at less than a deductive change order. Owners may use convenience terminations to protect themselves against their own design errors or inaccurate quantity estimates. The use of these clauses for claim defense purposes is hardly unheard of . . . read more. Featured in next week's Construction Claims Advisor: Board Addresses Recovery of Change Order Proposal Costs Design Services Not Compensable Under Design/Build Document Procurement Protest Not Subject to Anti-SLAPP Law Welcome to this week's Construction Advisor Today — Your weekly online news source featuring the latest updates and insight surrounding the construction industry: construction law case summaries, green building, risk management, contract management, project controls, BIM, scheduling and more. To access Construction Advisor Today, visit: ConstructionAdvisorToday.com or click here. For a free trial to Construction Claims Advisor, click here. For a free trial to Construction Project Controls and BIM Report, click here. Featured Event:  Construction Project Governance Next Week:  Learn how to mitigate risks for your company by improving governance on your construction projects in this 90-minute interactive program, Tuesday, February 23rd at 1:00 PM EST. Harold Dorbin will provide you with an understanding of the development of effective project governance solutions for your organization and give insight to identify and address symptoms of poor project governance. You will get answers to your pressing questions, PLUS a clear understanding of the steps necessary to start your Project Governance campaign. To register, click here. Autodesk Acquires Dynamite VSP, SIM Visualization Software Products, Related Assets Autodesk Inc. recently announced that it has completed the acquisition of Dynamite VSP and Dynamite SIM visualization software products and related assets. The products were purchased from 3AM Solutions, a United Kingdom-based technology company that develops visualization software for civil infrastructure. Terms of the transaction were not disclosed.  Dynamite VSP and Dynamite SIM technology will help Autodesk automate the process of creating visualizations for projects made with AutoCad Civil 3D software. Dynamite VSP offers ways to bring AutoCAD Civil 3D software data into Autodesk 3ds Max Design software . . . read more.   Lawmakers Want 10 Million Solar Rooftops WCongressional lawmakers earlier this month introduced legislation designed to get photovoltaic solar panels installed on 10 million rooftops across the United States over the next 10 years. The bill, offered by Sen. Bernie Sanders (I-Vt.) and Rep. Steve Cohen (D-Tenn.), also would increase the capacity of solar hot water by an estimated 10 million gallons over the same period.  The 10 Million Solar Roofs and 10 Million Gallons of Solar Hot Water bill would provide rebates to various property owners to install photovoltaic (PV) and solar hot water heating systems. The maximum rebate for PV systems would begin at $1.75 per watt and decline to $0.50 per watt in 2018. The maximum solar thermal rebate would total $1 per watt . . . read more.   Upcoming Webinars:     3rd Annual BIM Roadmap Series: BIM Evolution — 2010 and Beyond! Meet With Six Industry Luminaries in the Design and Construction Field: Finith Jernigan • John Jurewicz • Willem Kymmell • Deke Smith • Michael Tardif • Paul Teicholz. 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