Blog: Substantial Performance

Cash Allowance or Contingency?

Cash Allowance for patio garden

You are designing a new condominium building, and your not a landscape architect, however the development company your client has requested that the the landscaping for the building be included in the construction contract.   You are behind schedule, the tender deadline is nearing and there is no time to hire a landscape architect.   What do you do?  Postpone the tender? This is a case where a Cash Allowance may come to your rescue.  Read More…

“Process” is the answer, now what’s the question?

Have you ever had to deal with:

  • Marking up a set of drawings, only to find out that really basic information is missing time after time; North arrows, references, sheet titles not matching the index page?
  • Each employee re-inventing the wheel or doing it their own way when it comes to contract administration forms? Everyone having their own special template or spreadsheet tracking system?
  • Looking for information on the office server, only to find out that it was saved locally on a personal computer and that the employee is not around when you need it?

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Can’t agree?

The renovation of a heritage building started with preparations to demolish some walls to accommodate a new room layout.  Unfortunately, during the preparations the general contractor discovered that the building structure had deteriorated to the point where there would be serious structural problems if  the walls were removed.

This discovery would  result in additional construction costs, and would also delay the project completion date.  The Architect with the consultant team drafted a Proposed Change Order.  The  General Contractor provided a very expensive quote for the  work of the change, and a notice in writing of a delay claim.  The Owner responded that he could not accept any change in the schedule and that the  proposed change order quote  was crazy and  bordered on extortion!

What would you do, if you had a dispute that looked like it could not be resolved?  There are 2 possible strategies that you could use.  Read More…

“Liens” – Get paid

So what does a Mechanics lien have to do with construction, aren’t mechanics supposed to only work on cars?  Well if you go back into the original definitions and history books, “mechanic” was originally used to define a person who performed work with their hands, or the modern day equivalent of a “builder” or “trade person”. The mechanics lien was first created in North America by Thomas Jefferson and was a type of “Financial Engineering” that would encourage building, conceived as a form of capital injection for the economy.  A lien would allow a landowner to use his land as security for improvements.  For example, if a landowner hired a builder to construct a barn, the builder knew that he would have security in the land and was more likely to take on the work instead of passing it off as too risky.  [i] Read More…