Public Works Seminar / Webinar - November 2, 2011

Join Foster Pepper attorneys and special guest speakers for this informative discussion on how municipal agencies can make the most of their public works project dollars.

Public Works Contracting: How to Get the Best Value from a Weak Economy

Wednesday, November 2, 2011 | 10:30 am – 2:30 pm
Foster Pepper PLLC | 30th Floor Conference Center
1111 Third Avenue | Seattle, Washington

Please respond by: Friday, October 28, 2011

REGISTER HERE

Questions?
Registration and other questions (ADA Accommodations, special meal requests, etc.) should be directed to events@foster.com.

More information can be found HERE.


TOPICS

CLE (Attorney) credits pending | Certificates of Completion available for other organizations

Schedule:
10:15 am                          Registration
10:30 am - 2:30 pm        Program/Q&A (Lunch provided)

For more information, visit Foster Pepper's EVENTS page or REGISTER.

Why Developers Should Track All Warranty Claims

 

Does the Responsible Developer track all warranty claims?  Absolutely, it is just good business!

It is axiomatic that when a development project is complete that there are a number of warranties that must be tracked and managed as part of the post project completion entitlements and obligations.  This risk management process applies to all projects, public and private, and depending on who you are in the project hierarchy, it is a continuation of the project financial analysis.

Yet many parties to the project myopically focus solely on the contractual written warranty period, which typically is one year.  The Responsible Developer, however, tracks all relevant warranty periods including those express and implied at law warranties.  Why?  Because anything less may just be throwing money away.  Who can afford to do that in these challenging economic times?  

The actual process is relatively simple.  Once a project achieves substantial completion, the following warranties should be calendared and tracked:

1.  90 days prior to expiration of contractor's 1 year warranty.

2.  90 days prior to expiration of any manufacturers' warranties.

3.  180 days prior to expiration of all (3,4 and 6 year) contract statutes of limitation and repose.

The reason you calendar these dates is so that you can inspect and test the work, materials and systems in your project for any premature failures or damage and give your self enough time to document it and provide that written information to the party the owes you the warranty obligation-before that party is immune from suit.

Some public developers may be less concerned about the expiration of statutes of limitation because Washington law provides that where the work was for the benefit of the state the six year statute of limitations does not apply.  A public entity, however cannot afford to rest on that laurel too long, because many contractors are either corporations or limited liability companies that after the project may become dissolved and immune from suit.  While there are artful ways to draft around such future warranty impediments in the contract, developers can easily monitor the status of their contractor's legal status by using the information maintained by the Washington Secretary of State and Labor and Industries.

The reason you as the Responsible Developer need to make this effort is so that in the event a post completion inspection reveals latent defects in a product or work, you will be able to timely make a claim and either obtain repairs, insurance money or both.  If you fail to calendar these dates or make the effort, then you may just be throwing money away.  Imagine being asked by tax payers or investors why no one had the foresight to include this analysis as part of your project.

Well now you know what the Responsible Developer does as an integral part of maximizing the value of all of the warranties it may be a beneficiary of.

SALISHAN III EARNS LEED PLATINUM

Tacoma Housing Authority (“THA”) celebrated the completion of the last phase of the ambitious HOPE VI redevelopment of its Salishan housing development on December 8, 2010. Phase III of New Salishan received a LEED Platinum certification, the only public housing authority development and the largest residential development of any sort in the nation to receive this designation. Completion of Phase III marks the achievement of one of THA’s major strategic objectives to develop and manage its properties to improve the local and global environment. 

Salishan’s LEED Platinum certification is just one of many awards received by THA for this ambitious project, some of which were previously reported on this blog. Phase III completes the over 1350 housing units in New Salishan of affordable and market rate rental housing, single family homes for sale, along with commercial and community buildings, and parks, all on a brand new infrastructure.

Phase III features a plethora of sustainable design and maintenance features. A bio infiltration swale system in the landscaping keeps 90% of storm water on site. Housing units feature ductless mini split heat pump HVAC systems, air barrier systems to tighten the unit envelope and reduce air infiltration, insulated foundations and increased unit insulation, windows with a U-factor of .26, low flow water fixtures, low VOC and no-added urea formaldehyde materials, and almost 100% hard surface flooring. 

In order to ensure Salishan’s sustainability and future energy saving performance, THA is also providing comprehensive training for property management staff and occupants to capture and maintain the designed energy improvements. In addition, each unit comes with a Tacoma Power “PayGo” meter. Each meter is connected to the internet, enabling occupants to see in near real time their actual energy consumption and costs. This allows residents to compare power usage from laundry day to an ordinary day, or the effects of using different appliances. 

Today, more and more owners, developers, and property managers (including the U.S. government) are realizing the importance of properly maintaining sustainable buildings to achieve their energy savings and sustainable benefits and instituting training programs and manuals to help owners, managers, and tenants learn correct maintenance procedures.

Congratulations to THA on completion of Phase III of New Salishan and its LEED Platinum certification.

New Salishan Continues to Shine

The City of Tacoma was one of two "Large City Winners" of The Home Depot Foundation's second annual Award of Excellence for Sustainable Community Development.  Tacoma's selection was based on its support of sustainability city wide, and the Phase 2 completion at Salishan, a Tacoma Housing Authority award-winning residential redevelopment community.  The Home Depot announced the awards on December 3, 2010.  As the winner, Tacoma will receive a grant from The Home Depot Foundation for $75,000. 

Salishan began as government housing for the tremendous influx of families to the Tacoma area to work in the war effort in 1942.  After the war, the government gave the property to the Tacoma Housing Authority (THA) and it became a major part of THA's affordable housing stock.  In 2001, the Tacoma Housing Authority began an ambitious plan to replace the worn out infrastructure and unsustainable structures.  The project cost over $225 million, and increased the number of housing units from 855 to over 1350.  "New Salishan" is a mixed-income, mixed-use neighborhood of affordable and  market rate rental housing, single family homes for sale, commercial and community buildings, and parks, all on a brand new infrastructure.

The cornerstone of the project is its environmentally responsible design and features, from extensive bio-infiltration swales that keep 91% of rainfall on site, to a THA education, training, and retail center designed to be certified as a LEED Gold project.  The project added or rebuilt three elementary schools, a middle school, a library, and a medical and dental clinic, along with the THA center, all within walking distance of New Salishan's residents.

To enhance the community even more, THA and others sponsored the Salishan Shine Project. Combining grants of funds, materials, skills, and labor, including volunteer adults and children living in New Salishan, the Shine project built and equipped playgrounds for children of all ages, installed outdoor art, developed outdoor gathering areas to garden, cook, or just sit, and constructed scenic pedestrian bridges over the creek running through the community.

The City was cited for its planning and operational commitment to sustainability, throughout its comprehensive plan and all phases of City operations and practices.

Foster Pepper is proud to represent both the City of Tacoma and THA.  Congratulations on this award, and yet another feather for New Salishan's cap.

New Public Works Reporting Requirements

EHB 2805, which was recently signed into law by Governor Gregoire, requires contractors on various Washington public works projects estimated to be over $1 million (certain project are exempt) to report information regarding certain off-site, prefabricated, non standard items produced outside of the state of Washington. The information must be provided as part of the contractor’s affidavit of wages paid form. The requisite information includes: (1) the estimated cost of the public works project; (2) the name of the awarding agency and the title of the project; (3) the value of the off-site, pre-fabricated, non-standard project specific items produced outside the state of Washington; and (4) the name, address, and federal employer identification number of the manufacturer of the off-site, pre-fabricated, non-standard project specific items. To review the bill, click here.

Contractors
The teeth behind the new law is that a contractor’s repeated failure (more than once) to provide this information means the contractor is not “responsible”, which would preclude the contractor from bidding on other projects.

Public Owner Requirements
Public agencies must put the reporting requirements in their bid documents. Requisite form language is found at the General Administration Office website, by clicking here.

Questions?
Various questions are addressed on Labor and Industries’ website including, What projects are exempt? When does the law go in effect? What happens to contractors and subcontractors who do not comply with the new law? Click here.
 

Free Public Works Podcasts - How to Get Best Value from the Bad Economy

Video and audio podcasts from Foster Pepper's July 26th Public Works seminar are now available.

The program provides guidance to municipal agencies on how to maximize the success of public works projects through effective contracting and project management. 

The podcast segments include:

Low Price = Good Value?  Establishing Bidder Responsibility and Performance Capacity
  Steve DiJulio, Foster Pepper PLLC
 
Ted Coulson, Foster Pepper PLLC

When Low Price is Not Enough – Green Building and Alternative Procurement Methods
  Kelly Angell, Foster Pepper PLLC
 
Greg Guedel, Foster Pepper PLLC

Discussion on New Housing Authority Procurement Laws
  Greg Guedel, Foster Pepper PLLC
  Michael Mirra, Tacoma Housing Authority

Project Management: Turning a Good Contract Into a Good Project
  Brad Tong, Shiels Obletz Johnsen, Inc.

The View from the Other Side: Contractor Perspectives on Facilitating Project Success
  Tom Peterson, Hoffman Construction Company

No Surprises: Contracting for End-Of-Project Closeout Certainty
  Greg Clark, Foster Pepper PLLC

The speakers' slideshow presentations and written materials are also available at no charge, please contact Greg Guedel (206.447.8931 or guedw@foster.com) for copies.

(Audio files are in .mp3 format and require an audio player or you can listen via iTunes. Video files are in .m4v format and require QuickTime.)

Bastyr Goes For LEED Platinum

Bastyr University claims to be the first school in the country to be in line to earn a LEED Platinum certification for its just completed student housing project. Consisting of 11 three story buildings housing 132 students, the project marks Bastyr’s first addition to the school’s campus since the natural health arts and sciences school took over its current home at the 51 acre site of a former Catholic monastery in Kenmore, Washington. Bastyr formally celebrated the project opening on June 22, 2010.

Bastyr and its general contractor, Shuchart Corporation, went through many steps to reach Platinum status. Energy efficient construction was used throughout the project, including high r-value insulation, energy efficient and long lasting fiberglass windows with ultra high performance glass, and radiant floor heating with super high efficiency gas boilers. Energy efficient light fixtures, appliances, and plumbing fixtures were used throughout the project and harvested rain water will be used throughout the complex for non-drinking purposes.

During construction, the contractor was able to recycle a remarkable 96 percent of the construction waste, primarily through training of subcontractors, critical layout of recycling containers, and proactive arrangements with local facilities for recycling of materials. Benches and other items were made form scraps and leftovers, and some chairs and benches were made from the webbing of old car seat belts.

Outside, buildings are connected by a series of garden paths, courtyards, and outdoor living spaces carefully designed to be energy efficient and mitigate the impact on the local environment. Ample bike storage promotes students' use of their bikes for transportation and an extensive bioswale and sediment pond system treats recovered surface water before releasing it back slowly into neighboring wetlands.

Bastyr utilized a LEED consultant for the project, Seattle’s O’Brien and Company, and early on in the project applied for and received a grant from the King County LEED Grants Program. This program is part of the county’s “Green Tools” program to encourage sustainable building outside the city of Seattle.

Bastyr University is proud of its sparkling new sustainable building. Its president, Daniel K. Church, said: “Providing students with eco-friendly, on-campus housing is a significant milestone in furthering our mission to enhance the health and well-being of the human community.”