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Construction Nightmares (Jobs from Hell and How to Avoid Them)

Construction Nightmares


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Construction Nightmares

(Jobs from Hell and How to Avoid Them)

By: Arthur F. O'Leary and James Acret

Our own mistakes make effective, though sometimes expensive lessons. Usually it's safer to learn from the mistakes of others, and a lot less expensive.

Construction Nightmares: Jobs From Hell and How To Avoid Them narrates actual jobs gone bad from the world of construction dealing with busts in plans, extras, delays, interference, scheduling, extra work, change orders, defective construction, inadequate supervision, and incompetent contractors. In other words - just about every problem in the construction industry.

After Arthur F. O'Leary tells you what happened on the job, what went wrong and how it went wrong, James Acret provides an in-depth legal analysis and the probable outcome of the potential arbitration or lawsuit.

The analysis provided deals with contracts, cancellation of contracts, walking off the job, removing a contractor from the job, responsibility of the bonding company, mechanics liens, insurance covers, arbitration, mediation, lawsuits, important provisions in construction contracts, responsibilities of the architect and the owner, liability for construction defects and much more. Construction Nightmares also provides you with the practical information you need to handle problems on the job.


Acknowledgements, xv

1, The Foolproof Construction Contract
An Attempt to Write a No-Extra Contract, 1
Points of Law
Who Pays for the Extra Work, 7

2, ABC Warehouse I
A Construction Defect, 9
Points of Law
Allen Gets a Cracked Slab, 15

3, ABC Warehouse II
Winding Up the Job, 19
Points of Law
Job Close-Out, 25

4, ABC Warehouse III
A Maintenance Failure, 27
Points of Law
Plugged Roof Drains, 33

5, The Tulare Job
A Costly Labor Relations Problem - A Disastrous Subcontract, 35
Points of Law
Problems with Labor Relations, 41

6, ABC Warehouse IV
The Mysterious Retaining Wall Collapse, 43
Points of Law
Retaining Wall Collapse, 51

7, ABC Warehouse V
Earthquake Damage or a Latent Defect?, 53
Points of Law
Glulam Beam Failure, 61

8, The Joint Venture
A Bonded Roofing Subcontract, 63
Points of Law
Choose Your Joint Venturer More Carefully Than Your Spouse, 69

9, Shangri-La Gardens
The Short Life of Eterna1 Waterproofing, 73
Points of Law
Intentional Misconduct, 81

10, ABC Warehouse VI
The Pressure Regulator Ordered by the Building Inspector, 83
Points of Law
Who Pays for the Pressure Regulator?, 87

11, Davren Effingwell dba Economy Home Improvement Company I
Who Protects the Owner? Conflicts of Interest, 89
Points of Law
The Dangers of Contracting With a Friend, 97

12, ABC Warehouse VII
Faulty Contractor Selection and Contract Adn1inistration, 99
Points of Law
Allen Hires His High School Buddy, 107

13, Davren Effingwell dba Economy Home Improvement Company II
Cleaning Up the Mess, 111
Points of Law
The Aftermath, 119

14, ABC Warehouse VIII
Shop Drawings Procedure, 121
Points of Law
Shop Drawings, Changes, Claims, and Dispute Resolution, 129

15, Venture Tower
Responsibility for Window Wall Leaking, 133
Points of Law
Fraudulent Shop Drawings, 143

16, PSI Creativity Center I
The Design and Bidding Phases, 147
Points of Law
A Difficult Client for an Architect, 155

17, PSI Creativity Center II
The Construction Period, 159
Points of Law
Quagmire Employs His Patient as a Contractor, 167

18, ABC Warehouse IX
Owner's Assignment of Subcontractor, 171
Points of Law
Allen Helps His Brother-in-Law, 179

19, ABC Warehouse X
Owner's Separate Contractor, 183
Points of Law
Allen Hires a Decorator, 193

20, Pacific Horizon I
Value Engineering: The Contract Negotiation Phase, 197
Points of Law
Selling the Job, 205

21, Pacific Horizon II
Value Engineering: The Construction Period, 209
Points of Law
The Construction Period, 217

22, Pacific Horizon III
Value Engineering: After Completion of Construction, 221
Points of Law
Living with the Building, 229

23, ABC Warehouse XI
Substitutions in Lieu of Specified Materials, 231
Points of Law
Substitutions, 237

24, Parc L'Cockaigne
Discovering the Cause of Construction Defects, 239
Points of Law
Condominium Defects Caused by Contractor Ignorance, 245

25, ABC Warehouse XII
A Corrupt Alliance - A Criminal Conspiracy, 247
Points of Law
Skullduggery and Corruption, 253

26, ABC Warehouse XIII
Home Improvements, 257
Points of Law
Allen's Deck - The Independent Contractor, 265

27, Utopian Villas
Keeping Costs Under Control, 267
Points of Law
Construction Documents for an Owner-Builder Developer, 277

28, The Chief Estimator
Getting the Job by Hook or by Crook, 279
Points of Law
The Crooked Estimator, 287

29, ABC Warehouse XIV
Allen's Tenant - Part I - The Hot Prospect, 291
Points of Law
Allen's Tenant - Part I - The Hot Prospect, 297

30, ABC Warehouse XV
Allen's Tenant - Part II - The Leasehold Improvements, 299
Points of Law
Allen's Tenant - Part II - The Leasehold Improvements, 303

31, ABC Warehouse XVI
Allen's Tenant - Part III - Living with the Tenant, 305
Points of Law
Allen's Tenant - Part III - Living with the Tenant, 309

32, ABC Warehouse XVII
Roofs Don't Last Forever, 311
Points of Law
Roofs Don't Last Forever, 321

33, Spartan Savings Bank
Uncovering and Correcting Defective Work - Who Pays?, 323
Points of Law
Uncovering and Correcting Defective Work - Who Pays?, 331

34, ABC Warehouse XVIII
The RME - Responsible Managing Employee of a Contractor, 333
Points of Law
The RME - Carl Goes into the Contracting Business, 339

35, Malibu Riviera Badminton and Swimming Club
The Hazards of Innovation, 341
Points of Law
Definition of Architectural Malpractice, 347

36, ABC Warehouse XIX - Alice's Coffee Shop
Part One - An Exciting New Life for Alice, 349
Points of Law
Late Completion and Liquidated Damages, 355

37, ABC Warehouse XX - Alice's Coffee Shop
Part Two - Cleaning Up the Chaos, 357
Points of Law
Owner Must Pay for Changes, 365

38, ABC Warehouse XXI - Alice's Coffee Shop
Part Three - Construction Coordination, 367
Points of Law
Mechanics Lien Rights, 371

39, ABC Warehouse XXII - A New House for Alice
Part One - Finding the Property, 373
Points of Law
Read Before Signing a Contract, 379

40, ABC Warehouse XXIII - A New House for Alice
Part Two - Hiring an Architect, 381
Points of Law
Architects and Contractors Must Be Carefully Selected, 387

41, ABC Warehouse XXIV - A New House for Alice
Part Three - Finding a Contractor, 389
Points of Law
Construction Administration Is Not for Amateurs, 393

42, ABC Warehouse XXV - A New House for Alice
Part Four - The Construction Period, 395
Points of Law
The High Cost of Hiring the Wrong Contractor, 399

43, ABC Warehouse XXVI - A New House for Alice
Part Five - Salvaging the Remains, 401
Points of Law
Best to Hire a Construction Lawyer, 405

44, Blame the Window Washers
Maintenance Failure or Building Defect?, 407
Points of Law
Who Pays? Owner, Contractor, or Architect?, 417

45, ABC Warehouse XXVII- Expansion into Tucson Part One
A Perfect Contractor, 419
Points of Law
Legal Advice for Allen and Carl, 425

46, ABC Warehouse XXVIII- Expansion into Tucson Part Two
Dumping the Contractor, 427
Points of Law
Owner and Contractor Want Out, 433

47, ABC Warehouse XXIX - A Little Freshening Up Part One
Finding and Hiring the Right Painter, 435
Points of Law
Unfamiliar Contracts Must be Read Before Signing, 441

48, ABC Warehouse XXX - A Little Freshening Up Part Two
The Painting Contractor, 443
Points of Law
Insurance and Mechanics Liens, 449

Index - Stories, 451
Index - Points of Law, 457

About the Authors:

Arthur F. O'Leary, FAIA, MRIAI, a 40 year construction project veteran, has served as an arbitrator and consultant on more than 300 industry litigations and has written, lectured, and published extensively in over 40 years of professional activity.

James Acret ESQ., has practiced construction law for over four decades. In his years of service to the construction industry, he has represented numerous contractors, architects, engineers, owners, developers and sureties. James was a member of the committee that rewrote the California Mechanics Lien Law in 1969 and is considered the "Dean of Construction Lawyers." He is the author of several legal publications.

464 Pages, 8-1/2 x 11


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