| In the engineering and construction of a | | | | oz bottles. |
| microbrewery there are numerous areas where | | | | Of course, you will need to figure out the other |
| legal issues come into play from concept to | | | | requirements specific to the microbrewery, such |
| completion. This article will attempt to outline | | | | as water needs, drainage, floor finish, electrical, |
| some of the legal issues one must ponder while | | | | ceiling heights, venting, loading and unloading areas, |
| progressing through the entire engineering and | | | | etc. Slowly but surely the picture of what needs |
| construction process of a new 15 barrel (bbl) | | | | to be designed is coming together. As an |
| microbrewery. The process will be divided up into | | | | engineer, you will need to ask many questions, |
| two distinct sections - engineering design and | | | | and get answers to those questions, so that you |
| construction. | | | | can clearly outline the specifications of what needs |
| Let us begin the engineering design process with | | | | to be built in the contract. In addition, by getting |
| the owner's concept: "I want you to design a 15 | | | | these specifications in writing you are further |
| bbl microbrewery for me". As an astute engineer, | | | | eliminating any ambiguities there might be which |
| you know that you need a written contract. This | | | | could be used to not honor the contract, or which |
| written contract must clearly contain several | | | | could be used against you if you must go to |
| elements in order to be valid. These elements are: | | | | court to resolve a contract dispute. |
| competent parties, agreement (offer and | | | | After several weeks of hard work, you finish the |
| acceptance), consideration, lawful purpose, and | | | | project, submit the plans for approval, and they |
| form. The competent parties would be the owner | | | | are approved. You present the approved plans to |
| and you (or your engineering company). The | | | | the owner as consideration for your services, and |
| agreement would be your offer to design and | | | | as consideration you are paid your fee. |
| engineer the microbrewery, and his acceptance | | | | After having been pleased with your design and |
| would indicate and agreement. The consideration | | | | engineering services, the owner now asks you to |
| would be that you receive a fee (for instructional | | | | be the general contractor for the construction |
| purposes let's say you charge a flat fee to design | | | | phase of the project. He asks you to supply him |
| building plans that will be accepted by the permit | | | | with a bid as soon as possible. You call your |
| office for construction. The owner's consideration | | | | suppliers to get prices, availability, lead time for |
| would be those completed building plans that are | | | | delivery, etc. You receive bids from |
| accepted by the permit office, thus being ready | | | | subcontractors for the various trades (plumbing, |
| to use for construction. The contract must be for | | | | electrical, HVAC, flooring, etc). You pick those |
| a lawful purpose, in this case, the design and | | | | subcontractors that you think best fit your needs. |
| engineering of a microbrewery. The form, of | | | | In addition, you have done your due diligence by |
| course, would be the written form outlining all of | | | | making sure all your subcontractors are licensed, |
| the above elements. Now, that the basic elements | | | | that they are carrying their own forms of liability |
| of the contract are known, you must now work | | | | insurance, and that their workers will be covered |
| with the owner to get some answers that will | | | | in the event of injury. As a general contractor, |
| help you design this new microbrewery. | | | | you, of course, must also be licensed, possess |
| Since the microbrewery is going to be a 15 bbl | | | | liability insurance, surety bonds, workman's |
| system, you might need details like: | | | | compensation insurance, etc. These are all |
| What is the maximum annual production capacity | | | | instruments that help protect you legally in the |
| expected? | | | | event that any liability or injury issues arise during |
| What type of beer will be produced (ale, lager, | | | | the construction of the microbrewery. |
| stout)? | | | | When preparing the contract for the bid (and the |
| How will the beer be packaged (bottles, cans, | | | | job) you ensure that the specifications contain all |
| kegs)? | | | | of the critical elements such as: general provisions, |
| You are asking these questions because they are | | | | the schedule of work, change order procedures, |
| needed to determine the size of the facility, as | | | | drawings, receipt and storage of materials, |
| well as what special items must be designed. For | | | | warranty on labor, warranty on materials, |
| example, the owner says he wants to be able to | | | | methods of payment, procedure for lien release, |
| brew and store three brews a week. Knowing | | | | etc. |
| this you now have to calculate enough space and | | | | Once you have collected your information you |
| equipment to handle a maximum annual capacity | | | | submit your bid, and the owner accepts. Of |
| of 2250 barrels at 50 brewing weeks per year. | | | | course, there may be many different contracts |
| Calculation of Annual Production | | | | involved here: the contract between the owner |
| System Size (Brewhouse Size) x Number of | | | | and you (the general contractor); the contracts |
| brews per week x 50 weeks per year = Annual | | | | between you and the subcontractors; and the |
| Production 15 Barrels (bbls) x 3 brews/week x 50 | | | | contracts between you and your suppliers. |
| weeks/year = 2250 bbls/year | | | | Finally, the first building supplies arrive, construction |
| The owner also says that he wishes to brew | | | | begins, and within several months, you and your |
| both ales and lagers - 50% ale production and | | | | team have constructed a new top-of-the-line |
| 50% lager production. You also know that each | | | | microbrewery, adding value to the community, |
| type of brew has a different cycle for brewing, | | | | the nation's economy, as well as putting a little |
| and thus you need a different amount of | | | | money in your pocket. |
| fermenters per type of beer. | | | | Now, let's review. Along the way there were |
| Calculation of Number of Fermenters | | | | several areas where you could have encountered |
| 2250 bbl Annual Production Capacity (50% Ale, | | | | potential legal pitfalls. In the engineer role, you |
| 50% Lager) | | | | made sure that the contract contained all of the |
| 14 Day Ales / 28 Day Lagers with full | | | | elements necessary for it to be valid: competent |
| fermentation in fermenters Ales - 25 cycles / | | | | parties, agreement (offer and acceptance), |
| fermenter / year (50 brewing weeks / 2 week | | | | consideration, lawful purpose, and form. Also, |
| fermentation) Lagers - 12.5 cycles / fermenter / | | | | based on the owner's input, you made very |
| year (50 brewing weeks / 4 week fermentation) | | | | detailed specifications of the microbrewery design |
| Ales: 1125 bbls / year / (15 bbls x 25 cycles/year) | | | | and you put it in writing. This helped prevent any |
| = 3 Fermenters Lagers: 1125 bbls / year / (15 | | | | ambiguities between what the owner wanted and |
| bbls x 12.5 cycles/year) = 6 Fermenters Total: 9 - | | | | what you thought the owner wanted; |
| (15 bbl) Fermenters to produce 1125 bbls Ales and | | | | furthermore, you put the design specifications in |
| 1125 bbls Lagers | | | | writing. |
| This information will affect the dimensions of the | | | | In the general contractor role, you had to deal |
| microbrewery. You know that ales ferment ideally | | | | with potential legal pitfalls involving the contract |
| between 65 and 75 degree F, but you also know | | | | between you and the owner, you and your |
| that lagers ferment below 65 degrees and must | | | | subcontractors, as well as you and you suppliers. |
| age longer in lager tanks, so you must add not | | | | You possibly had to encounter labor issues, liability |
| only a "hot room" for brews but also a "cold | | | | issues, injuries, workman's compensation insurance |
| room" for the lager tanks and dispenser tanks. | | | | claims, incorrect building supply deliveries, theft or |
| The owner says that he wants to dispense the | | | | damage of materials or equipment on the job |
| beers in ½ bbl kegs and 12 oz bottles. He | | | | site, or maybe even attractive nuisance issues. |
| also stipulates that he needs enough space to | | | | Whatever you might have encountered as an |
| store a month's worth of each type of container. | | | | engineer and as a general contractor you know |
| So, based on this requirement you need to | | | | that you are armed with the knowledge to jump |
| calculate the space required for the bottling and | | | | over any legal issues you may encounter. It's time |
| kegging machinery, as well as the storage space | | | | to have a beer! |
| for a month supply of ½ bbl kegs and 12 | | | | |