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I-35 W Bridge Collapse

Design Firm Reaches Victim Settlement in Bridge Collapse

URS Corp. reached an agreement with attorneys representing the individuals injured or killed in the I-35W bridge collapse to pay over $52 million. There is no admission of responsibility. The San Francisco-based URS Corp. had been sued by more than 100 people. They accused the company of missing warning signs on the bridge before its rush-hour collapse into the Mississippi River on Aug. 1, 2007. 13 people died and 145 were injured.

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Construction Contract Administration

In recent years, design professionals have had their roles during the construction phase limited severely by cost-conscious clients looking to save money on projects. From a risk management perspective, design professionals are uniquely qualified to provide services during the construction phase so that the likelihood of project success is enhanced. The ability to observe and evaluate the contractor’s work enables the design professional to serve the client’s needs, while at the same time keeping current on the latest construction practices in the marketplace. As long as design professionals devote sufficient resources to the construction contract administration phase and diligently carry out their contractual responsibilities, it appears that the risks during this phase can be successfully managed. We have recently updated our construction contract administration phase claims study with some interesting case studies (access limjted to policyholders and brokers only).

http://www.schinnerer.com/risk-mgmt/Documents/BenchmarkingandClaimsStudies/Construction-ca-claims.pdf

Sustainability in the Desert

In Las Vegas Green is More than the Color of Money

The City of Las Vegas has a sustainability officer. That might seem like hiring a nutritionist for a candy store or a stand-up comedian for a funeral home, but the city of excess and artificiality appears serious about reducing its energy and water use.

Thomas Perrigo is the city official in charge of the sustainability initiatives. He recently was interviewed for SmartPlanet.com. Perrigo pointed out that both the city and its tourist service industry are working to change both operations and image. He pointed out that hotels are taking the lead on sustainability by significantly cutting energy use (and carbon emissions) and reducing water use. The efforts are not aimed at influencing visitors as much as it is on saving money. Perrigo mentioned that MGM Resorts and Harrah’s – the two resort/gaming operations that run 80% of the properties on the Las Vegas Strip – have been recognized as top green corporations.
Although the tourist industry accounts for much of the energy usage, it is the residential areas of Las Vegas that consume the most water. Perrigo mentioned that the big user of water is irrigation for residential landscaping. So the city has an education program on the beauties of desert landscaping and the Southern Nevada Water Authority is pushing desert-friendly plantings instead of turf. The authority is providing a $1.50 per-square foot incentive payment when lawns are replaced by native vegetation. It states that over 147 million square feet have been converted from grass to desert-friendly cover, through 42,000 participants, resulting in the conservation of 8.2 billion gallons of water annually.
Perrigo also stated that Las Vegas is taking advantage of its location with substantial investments in renewable energy – with solar power being the top priority – as well as achieving energy efficiencies. The regional transportation commission is even purchasing electric bicycles for city employees to use in place of automobiles for city business.
So next time you emerge from a 70 degree casino into the 100 degree Las Vegas summer to take a dip in a gigantic pool or view a frenetic waterscape, you can feel a little better that at least someone is working on conserving power and water.

New IPD Guide Published

In a joint effort, several leading construction industry organizations have published a guide called Integrated Project Delivery For Public and Private Owners. Contributors include the Construction Owners Association of America (COAA), the National Association of State Facilities Administrators (NASFA), the APPA (formerly the Association of Physical Plant Administrators), the Association of Higher Education Facilities Officers, the Associated General Contractors of America (AGC), and the American Institute of Architects (AIA).

The publication outlines the basic principles of integrated project delivery (IPD), and includes useful tips and advice for project owners considering this approach to construction. It divides IPD strategies into two areas of usage, “philosophy” and “delivery method,” and three levels of collaboration, “typical,” “enhanced,” and “required,” explaining the implications of each category. The paper also clarifies the relationships between IPD and three other trends in the industry: lean construction, building information modeling (BIM), and sustainability. Furthermore, risk and liability issues are discussed for many topics.
Notable sections of the paper include “First Steps” for implementing the strategy and “Recommendations for All Owners (Not Just Public).”
Copies are available from the following websites:
www.nasfa.net
www.coaa.org
www.agc.org/project delivery

HP's Cow-Powered Data Centers

Hewlett Packard has recently published a research paper on the feasibility of “cow-powered” data centers, according to an article from GreenBiz.com.

Cow-power means converting manure into energy by way of a biogas handler and electricity-generating turbines. The strategy’s overall goals are to cut down on methane pollution, reduce energy consumption that might otherwise be derived from burning fossil-fuels, and turn waste products into a usable commodity. Locating any business adjacent to a dairy farm could benefit the environment, the farmer, and the company in a truly symbiotic relationship. One downside involves moving the business away from cities (a move that could, in some cases, decrease total efficiency).
This technology has already been implemented in some power plants and factories. But why are data servers particularly good candidates for biogas? Among other reasons, the servers and storage units produce a lot of heat, and that heat can be put back into the biogas handler as usable energy.
Biogas is just one of many innovative solutions proposed for green design. As with any innovation, new rewards come with new risks. Design professionals must prepare for any possible claims that relate to their green building services. The usual culprits include breach of warranty and breach of contract if the building’s efficiency does not meet the project owner’s expectations. New risks could involve third-party claims concerning health and safety. Green building innovation, however, cannot be ignored as it promises to be the future of the design industry.