THE WINNER'S CIRCLE

Indianapolis Chapter CSI Newsletter

 August 2017

winners circle skyline
"I found Rome a city of bricks and left it a city of marble"









Deep Thoughts

- Augustus



Please let us know if you have any ideas for future newsletters.

Your Humble Narrator,


Mike Halstead
Indianapolis CSI Newsletter Co-Editor
Mild Mannered Reporter,

Ryan Muzzillo
Indianapolis CSI Newsletter Co-Editor
Contribution of Gary Gaiser:

The True Gentleman is the man whose conduct proceeds
from good will and an acute sense of propriety
and whose self-control is equal to all emergencies;
who does not make the poor man conscious of his poverty,
the obscure man of his obscurity,
or any man of his inferiority or deformity;
who is himself humbled if necessity compels him to humble another;
who does not flatter wealth,
cringe before power,
or boast of his own possessions or achievements;
who speaks with frankness but always with sincerity and sympathy;
whose deed follows his word;
who thinks of the rights and feelings of others rather than his own;
and who appears well in any company;
a man with whom honor is sacred and virtue safe.

- John Walter Wayland (Virginia 1899)
The Insider

WOO HOO!  The CSI Indy Trade Show at the JW Marriott on September 28 - our 43rd Annual open house for the construction industry - is officially sold out.  Now we need attendance - so if you are reading this and you don't show up I will send Mark "Hit Man" Smith to take out your kneecaps.  So far we have 122 registered to attend - we need at least 500!  Don't forget this year we have a joint venture with the AIA Regional Conference that will be in Indy plus our legal partners Drewry Simmons Vornehm will be conducting a seminar on the new 2017 AIA Documents.       

August 17 our program will be moisture control in walls - Understanding and Improving Indoor Air Quality.  A little birdie told me that we won't be meeting in the main building at The Willows - we will be meeting in the Lake Side Pavilion on the east side of the Lake.  CSI National "Construct" will be held September 13th through the 16th in Providence, Rhode Island, October 19 we will have a presentation on Drawings and Specs by Ron Guerin, November 16 will be Firestopping (not starting) and December 14 will be our Annual Holiday Party (not Christmas).

I was in Paris a few weeks ago for the Kiwanis International Convention and ran into The Hat.  There we are in the City of Lights and I couldn't get him out of the Moulin Rouge district and Pig Alley.  We partied all night at the Moulin Rouge and spent all morning at Jim Morrison's grave site whining and snotting.  Groupie.  I tried to track down Donald Trump assuming he would be more fun but he was busy with Bastille Day (the French 4th of July).  I went to the military parade and shouted USA! USA! USA!  I wanted to make sure they hadn't forgotten Somme, Marne or Normandy.  As David Bowie said everybody wants the young Americans.  Did you know that Yogi Berra survived D Day?  No wonder he had such a unique point of reference.     


Buck Wilhite - or as I knew him - Mud.  Because he was as old as dirt.  I first met Mud 30 years ago when he came to Woollen, Molzan & Partners and told me my elevator specification sucked.  I had only been out of college for 3 months so I didn't really know what the elevator specification actually entailed - I simply included the one we always used without editing.   So I did a little more research, made some calls to elevator contractors, called a few people who were members of some group called CSI that I had never heard of and discovered Mud was right.  Thus began my mentorship with Buck Wilhite - which included many road trips (he loved Indiana courthouses), a trip up the northeast coast and his cabin in Maine, several more skirmishes regarding steel window and elevator specifications and many trips to his whipping shed to play cards.  He cheated by the way.  Although I can't say after 30 years I really understand all that our specifications say, and don't always really care (sorry - it's the truth), I did learn the process of relying on other experienced people in the construction industry who did know what specifications meant and could be trusted.  Mud always stayed humble - his favorite saying was "I'm a genius - just ask me" - and I'm always grateful he took the time to pull a young punk aside and remind me there was still a lot to learn.                 

In case you were wondering - Twin Peaks was so bad I had to stop watching after the 6th episode.  What a bummer - I loved the original series 25 years ago.  It doesn't really matter because football is back!  And the Cubs are back in 1st Place - where they belong.  I'm whole again.  

- Your Humble Narrator 
Upcoming Events
Programs Committee

 

Indianapolis Chapter CSI August Meeting: Understanding and Improving Indoor Air Quality

Thursday, August 17, 2017 from 5:30 PM to 8:30 PM EDT

Sustainable buildings now address indoor air quality to enhance the comfort of building occupants. The course focuses on airborne pollutants and chemicals associated with adverse health effects.

Willows on Westfield

 

CSI Indpls Trade Show 2017

Thursday, September 28, 2017 from 2:00 PM to 7:00 PM EDT

Join 500+ Architects, Spec Writers, Interior Designers, Engineers, Contractors, and Sub-Contractors by attending Indy's best Commercial Construction Product Showcase! The CSI Indpls Trade Show will bring together hundreds of industry representatives to showcase their products, materials, and services as well as network!

JW Marriott

 

Indianapolis Chapter CSI Trade Show - Exhibitor Registration

Thursday, September 28, 2017 from 3:00 PM to 7:00 PM EDT

This is a chance for exhibitors to sign up for booths to the 43rd Annual CSI Indianapolis Trade Show, #DESIGNINDY2017. It will be held at the JW Marriott Indianapolis on Wednesday, September 28, 2017 from 3-7pm.

JW Marriott

 


It is time to register for the CSI Tradeshow 2017!
 
Join 500+ Architects, Spec Writers, Interior Designers, Engineers, Contractors, and Sub-Contractors by attending Indy's best Commercial Construction Product Showcase!  

Register by visiting  http://indianapolis.csinet.org/ or by clicking here.

Date : Thursday, September 28, 2017
Time: 3:00 PM - 7:00 PM
Location: JW Marriott - Griffin Hall, 2nd Floor (10 S West Street. Indianapolis, IN 46204)
 
Attendees will have the opportunity to visit 90 plus  booths showcasing exceptional products, materials, and services of interest to the design and construction industry, as well as attend a Continuing Education Seminar (CEU).

Attending the 2017 tradeshow will connect you with industry associates that can become resources and part of your network!

YouTube Channel  
Visual Education

 

The Indianapolis Chapter CSI has entered into a new phase of the digital communication era, and now has a dedicated YouTube Channel for the benefit of our membership.
View from the Tower


I just heard from the Trade Show Team that all the booths are sold. Great job guys and gals.

We're still looking for volunteers to work the Trade Show. Whether it's standing at the door or helping at the loading dock or at the registration booth. Please contact Brian Detty for the details, his email bdetty@pattersonhorth.com.

Just to keep everyone up to date, at this month's Board meeting we will have Mattison Corporation give a presentation for their management program. I'll keep you posted.

Again, please check out the "Legal Corner" of the newsletter. There is more than one reason to get certified.








Gene King, CSI, CCCA
Indianapolis Chapter CSI - President 2017-18  

Table Tops
Kent Hughes
Indianapolis Chapter CSI

  The Indianapolis Chapter of CSI is accepting reservations for Table Tops for upcoming Chapter meetings. The list of programs for upcoming Chapter meetings is published in this newsletter, the web site, or contact Program chairman Jack Morgan - morwalsoplad1@gmail.com , if you would like to target a particular meeting, be sure to make your reservation early. We do have a limit of four spaces available for Table Tops in a standard meeting room and 10 if we have a double room.
 
Table Tops are an opportunity to promote your company, products, or services to all attendees of our regular chapter meeting during the social hour. There is a maximum of 20 minutes for Table Top presentation at a regular Chapter meeting. You have the floor for maximum of five minutes after dinner before the speaker to communicate to the entire group if there are four presenters. If there is a greater demand, the 20 minutes will be divided by the number of presenters and rounded down to the nearest 30 seconds.
 
The Table Top presentations are FREE, one time, to new members, and cost current Indianapolis Chapter members only $75. Non-members get the same opportunity for $125. A 30 by 60 table with a cover and skit will be included. All proceeds go to support the Chapter. Payment is due at the time of setup.
Another opportunity for a Table Top is during an Education Seminar. The cost is if you combine it with the Chapter meeting and Education Seminar the cost would be $100 for current members and $150 for non-members.
If you would like to schedule a Table Top for a future meeting or seminar, contact:
 
Kent A. Hughes RA CDT - American Structurepoint
 
Be sure to put 'Table Top Request in the subject line
Certification Quiz
Jack Morgan - Quizmaster
 

1.  A punch list is generated by the:
 

a.  A/E just prior to substantial completion.

b.  The subcontractors after substantial completion.

c.  The Owner prior to substantial completion

d.  The Contractor prior to substantial completion.

 

2.  The contract clauses that establish payment responsibilities are found in:

 

a.  General Conditions

b.  Division 01 General Requirements

c.  Payment Bond

d.  Addenda

 

3.  The Contractor's first activity on the project site typically is:

 

a.  Survey and lay out the new construction

b.  Meet with the AHJ

c.  Install temporary power

d.  Begin mobilization

 

4.  The Design Negotiate Build (DNB) Process is more conducive to:

 

a.  Value analysis and repricing

b.  Complex negotiations

c.  Protracted counteroffers

d.  Multiple contracts

 

5.  An affirmation of fact or promise made by the seller to the buyer that relates to the goods and becomes a part of the basis of the bargain creates _______________________.

 

a.  An implied warranty

b.  A full warranty

c.  An express warranty

d.  A guarantee
Liquidated Damages Clauses:  What is a Contractor's risk for its delays?
Christopher S. Drewry
 
Where a contractor has been delayed by an owner (or by a third party for whom the owner is responsible), that contractor may be entitled to recovery.  But what happens where the owner has its project delayed through the fault of the contractor? What can the owner recover and what is the risk to the contractor?
 
Even if an owner has been delayed through the fault of the contractor, the owner still must be able to establish damages attributable to that delay. For an owner dealing with contactor-caused delays to the work, the proof of actual damages attributable to those delays may be very difficult (particularly if the owner is a public owner who may not typically have "lost profit" or "loss of use" types of damages).  As such, an owner's recoverable damages as a result of delays can range anywhere from a minimal amount to a very large sum of money depending on the impact to the project and what can be established causally.
 
In terms of contractor risks for its delays, it is not yet out of the woods. If the owner cannot otherwise establish actual damages, the owner still may be able to contractually shift the financial risk of loss to the contractor for its unexcused delays.  This contractual mechanism is the liquidated damages clause provided in the contract between the owner and contractor.  Such a clause "liquidates" or establishes a specified amount of damages to which the owner will be entitled for unexcused contractor caused delay past contractual substantial completion.  These damages are calculated on a per diem basis for every day that substantial completion of the project is delayed. For example, if a contract contains a $1,000.00 per day liquidated damages clause, and the contractor is ten days late in finishing the project, then the contractor will be liable to the owner in the amount of $10,000.00, despite the fact that the actual damages may be otherwise.
 
Liquidated damages clauses have been held enforceable in Indiana, provided that the provision reasonably quantifies the actual damages suffered and does not appear to penalize the breaching party.  Courts are reluctant to rewrite the parties' negotiated terms of a contract, including the liquidated damages clause, and thus will enforce liquidated damages clauses so long as the damages are not considered a penalty.  See Raymundo v. Hammond Clinic Ass'n, 405 N.E.2d 65, vacated,449 N.E.2d 276 (Ind. 1983).  Further, a fixed amount stipulated in a contract will be construed as an agreement for liquidated damages rather than a penalty in the absence of evidence tending to show that the amount of damages claimed is unreasonable. Duffy v. Shockey, 11 Ind. 70 (1858); Beiser v. Kerr, 20 N.E.2d 666 (1939). 
 
Thus, Indiana courts have established a two-part test for examining the enforceability of liquidated damages clauses: (1) whether the liquidated damages provision attempts to secure an amount for the non-breaching party which is reasonably proportionate to the amount of actual damages which would be sustained in the event of a breach, and (2) whether the provision for liquidated damages is designed to represent the measure of actual damages, or is it an apparent effort to penalize the breaching party, so that the damages will be disproportionate to the actual damages sustained.  Czeck v. Van Helsland, 241 N.E.2d 272, 274-275 (Ind. App. 1968).
 
In short, where the actual damages are uncertain or difficult to ascertain or prove, or alternatively where they are of a purely speculative character and the contract furnishes no data for their ascertainment, a liquidated damages provision will be upheld provided the sum contracted to be paid does not appear to be unreasonable in amount. Miami Valley Contractors, Inc. v. Town of Sunman, 960 F. Supp. 1366 (S.D. Ind. 1997). Liquidated damages are to be evaluated as of the time of the making of the contract and are deemed unreasonable when they are grossly disproportionate to the loss which may result from the breach or unconscionably in excess of the loss sought to be averted. Id . Yet, under Indiana law, while reasonableness and proportionality are polestars in an inquiry into whether a liquidated damages provision is enforceable, there are no hard and fast guidelines and the determination of enforceability turns on the balance of the particular equities of the case. Miami Valley; see also Zalewski v. Simpson, 435 N.E.2d 74 (Ind. App. 1982).
 
If there is a valid liquidated damages clause in the contract, what happens next?  At the outset, the presence of such a clause does not preclude the need for a threshold inquiry into the cause of the delay in question.  Typically, if the cause of the delay is solely that of the owner, and the contractor has timely and properly given notice of its delay and requested a time extension, then the liquidated damages clause will not be applicable. However, where there is a concurrent delay (in other words, both owner and contractor caused delays), the cases are split on the issue of whether liquidated damages will be imposed.  If the owner has contributed to the delay, the majority rule, strictly by weight of authority, seems to be that the liquidated damages clause will not be enforceable against the contractor, even if the delay can be prorated. Nevertheless, the owner may still seek to recover its actual damages for the contractor-caused delays through the allocation of the concurrent delay events.
 
For the contractor who has a liquidated damages clause in its contract, it should presume its enforceability in determining the risks associated with whether it can meet the contractual date of substantial completion.  The contractor also should administer the project with a keen awareness of this provision and be prepared to document any delay events and provide timely notice to the owner when those events are not contractor-caused. This sets up the best defense to this contractual clause. With no delay causation attributable to the contractor, the per diem assessment of liquidated damages is precluded.

My experience with the 2017 Great Lakes Regional Conference - Akron/Canton, Ohio
David J. Fryman
 
This May, I had the opportunity to attend the 2017 Great Lakes Regional Conference in Akron/Canton, Ohio.  While this was only my third regional conference, it was the second GLRC where I personally felt enriched and that my understanding and knowledge was expanded.  I am currently a member of the Board of Directors for the GLR, but it was not until the strategic planning committee meeting, that I truly began to understand and appreciate the GLR and the role it plays in the region.  I was able to understand the goal and purpose of the GLR committee, as well as it s direction for the the future.  I currently serve as a VP and was part of the two-man team that shaped the new regions that comprise the Great Lakes Region.  This restructuring was done in an effort to promote collaboration between chapters and for the larger chapters to help strengthen and sustain the smaller and growing chapters in the GLR.  I was also able to acquire further training for future positions within my local CSI chapter in Indianapolis, as well as gain a great education and appreciation from just having the opportunity to be around the current and former GLR leadership.  While it was a personal sacrifice for my wife and I to be at this event, it was also a wise investment.  I know the knowledge and experience I was able to glean from the presenters, product reps, attendees, and leadership will only serve me well both now and in the future.  I look forward to next year's conference and I am already making plans to attend.  I believe that this conference should be mandatory for all leaders both present and future as CSI continues to shape the construction industry with both specifications and leadership.
Furnish, Install, or Provide?

 
Most architects, I believe, define the terms furnish (or supply ), install , and provide , and sometimes those definitions appear in an owner's general conditions. When defined, they are part of the contract documents, and requirements using them are enforceable based on those definitions. In practice, perhaps because the definitions are nearly ubiquitous, I have had few problems with interpretation by contractors, or with enforcement.

Oddly, it's architects  who seem to have the most trouble understanding and using these definitions, even though the definitions originate in the architect's own office.
In casual conversation, it's common to use furnish and provide interchangeably. This should be no surprise, as the first definition of furnish is either provide  or supply  in every definition I found, and definitions for provide usually are make available supply , or cause to be present , all of which also mean furnish.

When used in casual conversation outside the office, there usually is no problem as no further precision is needed, and we aren't concerned about installation. However, when used in casual conversation in the architect's office, or in conversation between architect and owner, there is at least a potential problem. 

If a specifier, or an architect who cares about such things, is involved in the conversation, it's likely that the precise definition will become part of the discussion, and the related contract documents will use the correct definitions. But without the involvement of such a person, it's quite possible that the contract documents will use the wrong, or conflicting, definitions.

A similar problem exists with references meant to indicate either who is furnishing or who is providing something, for example, by owner  or by contractor . I have seen countless references of this sort, and each time asked what the intent was. The responses have been inconsistent, sometimes meaning furnished by  and other times meaning provided by

To further complicate the issue, I have seen increasing use of the term vendor . In the context of the construction contract, there typically are two or three of these defined entities: The owner, the architect, and the constructor (contractor, CM, or design-builder). Everything must be furnished, or installed, or furnished and installed, by either the owner or the constructor. In my experience, a "vendor" is most often a company that works directly for the owner, either furnishing materials for installation by the constructor, or furnishing and installing materials for the owner. In either case, an additional term is not required, because the vendor works for one of the defined entities. A vendor that works for the owner is, in the context of the contract, indistinguishable from the owner; and a vendor that works for the contractor is a subcontractor.

In casual conversation, incorrect use of defined terms may be an inconvenience, but when defined terms are used imprecisely in conversation with a client, whether in formal or informal communication, incorrect interpretation is almost inevitable. 

To eliminate these problems, consider avoiding the term provide, and using instead, the slightly longer, but unmistakable furnish and install. Some would argue this is not necessary, and I agree. However, in balance, the advantage of clarity and the elimination of the need to continually discuss the speaker's intent can outweigh the simplicity and elegance of using provide. 

How often have these definitions led to problems for you?

© 2016, Sheldon Wolfe, RA, FCSI, CCS, CCCA, CSC

Agree? Disagree? Leave your comments at http://swspecificthoughts.blogspot.com/
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Chapter Photos
Capturing Memories
 



Congratulations to our CSI Member of the Year, Andrew Huehls!

 
3 Wise Men
 






3 More Wise Men



 

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Board of Directors' Minutes

Online Archive  

 

Minutes of the Indianapolis Chapter CSI Board of Directors can be read here.  Please contact the president with any comments or questions.
Legal Corner
 
CONTRACT 

SPECIFICATIONS

James A.Cummings, Inc. v. Department of Veteran Affairs 2013  U . S C B CA  2409  ( J u n 28,  2013).
 
T h Con t ra ct or  e n te r e in t fixeprice contract to install fuesystems at medical centein OrlandoFlorida.  ThContractor intendeto supplglass fibereinforce(FRP) carriepipe, but thVA demandethcontractor install steepiphoused within thFRP.  Thcontractor requestethathVA reconsider the contractor's plan to use FRP carrier pipe since the contract specifications could be interpreteto requirsteepipabove gradbut non-metalliconduibelograde.  Eventually, thcontractor proceedeundeprotest to install steepipe, and submitteclaifor approximately $200,000.00 to covethincreasecost.  ThVA deniethclaim, and thcontractor appealeto thBoard of Civilian Contract Appealwhicsidewitthcontractor.
 
The  contract  permitted  the  contractor's  choice  of  FRP  pip e,  w hi c al s c o m pli e w i t S t a te  of  F lorida  requirements  and  regulations.  The  VA's  rejection  of  FRP and  i ts  r equ ir eme n t ha t h c on t ra ct or  use  stee pipin g,
 a m o u n te to  contract change and thcontractor was entitleto an equitabladjustmenfor thincreasecost.  Whilbotsides argueto some extenthathcontract specificationwer"ambiguous" the Judge ruled that they were both wronand therwas no ambiguity.  Therwas way to read the specificationso thaeitheFRor steel pipe could meet contract requirements whicalsmet Florida requirements, and the contractor's interpretation was valid.

 

Quiz Answers:

1. - d (PDPG 13.7.3)
2. - a (PDPG 11.5.4.2)
3. - d (PDPG 13.4.8)
4. - a (PDPG 12.5.3)
5. - c (PDPG 11.3.18.1)
In This Issue

August 17, 2017

Location:
Willows on Westfield

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