A Key Battleground: Material Price Escalations and Supply Chain Disruptions

At the forefront of concerns for those in the construction industry is the escalation in material prices and disruptions to supply chains that were in large part a byproduct of the pandemic. Project owners and contractors want to understand their rights with regard to these risks and also how the risks should be apportioned. In my latest column for the Daily Journal of Commerce, I look at how contractor risk is shared using a variety of methods in several types of commonly used construction contracts. I also provide some suggestions to help parties to a stalled contract negotiation find an outcome in which both the owner’s and contractor’s interests are aligned. Read the full article here.

Originally published as an Op-Ed by the Oregon Daily Journal of Commerce on July 16, 2021.

Don’t Be Late! (But Assume That Your Construction Project May Be)

By Mario Nicholas on June 28, 2021 Posted in Construction Contracts, Construction Industry

Today, the construction industry faces a myriad of challenges – as well as the COVID-19 pandemic, rapidly increasing construction material costs, labor and material shortages, and a hot housing market are potential obstacles for project owners and contractors that, despite their best efforts and intentions, could prevent them from completing their construction projects on time. In my latest article for the Daily Journal of Commerce, I look at some steps owners and contractors can take to mitigate the risk brought by these challenges. Read the full column here.

Originally published as an Op-Ed by the Oregon Daily Journal of Commerce on June 17, 2021.

Liability Laws Still Require Contractors to Follow Safety Guidelines

By Antonija Krizanac on May 24, 2021 Posted in COVID-19, OSHA

About a year ago, I wrote a column for the Daily Journal of Commerce about effective COVID-19 safety policies and what contractors can do to maximize job site safety to comply with developing Occupational Safety and Health Administration (OSHA) and Centers for Disease Control and Prevention (CDC) COVID-19 safety standards and guidelines. In the interim, much has changed but much has remained the same – OSHA and CDC guidance, as well as how businesses must operate during a pandemic, continues to evolve, but the fact remains that contractors still need to make their job sites safe and take steps to prevent their employees and clients from contracting COVID-19 on the job site or at the office. In my latest column for the DJC, I look at a few of the liability issues facing contractors and outline a few steps for them to protect themselves from such liability. Read the full column here.

Originally published as an Op-Ed by the Oregon Daily Journal of Commerce on May 20, 2021.

Construction Project Scheduling & Delay Claims Seminar

By Sean Gay on May 18, 2021 Posted in Construction Claims

On June 2, 2021, I will co-chair The Seminar Group’s Construction Project Scheduling & Delay Claims live webcast seminar. The seminar will include a panel of knowledgeable lawyers with broad experience litigating scheduling and delay claim disputes. Click here to learn more and to register online.

Webinar: Navigating a Financially Troubled Project During Uncertain Times

By Bart Reed on April 28, 2021 Posted in Construction Industry, COVID-19, Washington

On June 11, I will be co-chairing and my colleague Colm Nelson will be a panelist for “Navigating a Financially Troubled Project During Uncertain Times,” a full-day webinar presented by the WSBA Construction Law Section in partnership with Stoel Rives. Colm will be on a panel that will cover claims and claim defenses related to COVID-19. Other topics include:

One-hour ethics discussion
Discussion of bankruptcy and receiverships
Overview of Washington lien law
COVID-19 Impacts on the construction industry and workforce
Judicial panel — perspectives on how coronavirus has changed trial and appellate practice and how they will continue to evolve
Insurance panel discussion
Annual case law and legislative updates

You can find out more about the event and register by clicking here. CLE credits are available.

Pandemic Creates Cause to Rethink Overlooked Contract Provisions

By Zachary Davis on April 26, 2021 Posted in Construction Claims, Construction Contracts

The construction industry has proved adaptable over the course of the pandemic — owners and general and trade contractors have worked closely to ensure that work continued, while keeping workers safe and complying with the various government-ordered and -recommended practices intended to slow the spread of COVID-19. By now, most owners and contractors are well versed on the importance of force majeure provisions in their contracts. But the pandemic has also shone a light on other often overlooked provisions. In my latest column for the Daily Journal of Commerce, I discuss these provisions as well as provide some suggestions on managing impacts and claims during a pandemic. Read the full article here.

Originally published as an Op-Ed by the Oregon Daily Journal of Commerce on April 15, 2021.

Benefits and Risks of Involving a Project’s Contractor in The Design

By Karl Oles on March 25, 2021 Posted in Construction Industry, Design Build Agreements

The roles of designers and contractors are being combined for more and more construction projects, an approach that comes with both benefits and risks. Several methods of project delivery are commonly in use, none of which is entirely exclusive — different projects may include different and overlapping roles for owner, designer and contractor. In my latest column for the Daily Journal of Commerce I compare three methods of project delivery — “design-bid-build,” construction manager” or “CM,” and “design-build” — and outline some advantages, and risks, inherent to each as well as means of protection against the risks. Read the full article here.

Originally published as an Op-Ed by the Oregon Daily Journal of Commerce on March 18, 2021.

New Washington Case Strictly Construes Lien Statute and Rejects Warranty Work as Basis to Extend Lien Filing Period

By Bart Reed and Loni Hinton on March 15, 2021 Posted in Commercial Construction Contracts, Liens, Washington

In its March 11, 2021 opinion, Division Three of the Washington Court of Appeals considered whether the 90-day period to record a claim of lien is extended by a contractor performing work after substantial completion to correct nonconforming work – usually referred to as “warranty work.” In the case of Brashear Electric, Inc. v. Norcal Properties, LLC, the Court strictly construed the statutory term “repairing” to exclude the contractor’s correction of its own work and rejected the notion that warranty work extended the 90-day timeframe to file a lien claim.

Norcal Properties, LLC (“Norcal”) and Blue Bridge Properties, LLC (“Blue”) own adjacent properties. Norcal and Blue separately contracted with Vandervert Construction (“Vandervert”) to construct a building on each property. The prime agreements’ substantive provisions were identical. Vandervert subcontracted with Brashear Electric, Inc. (“Brashear”) to work on both projects.

Under the prime agreements, Vandervert promised to correct nonconforming work up to a year after substantial completion. Vandervert’s subcontracts with Brashear required Brashear to assume the prime agreements’ warranty provisions. Continue Reading

Strategic Tips That Parties Should Consider When Mediating Disputes

By Sean Gay on February 22, 2021 Posted in Alternative Dispute Resolution, Construction Contracts

Nearly all construction industry standard form contracts require mediation as part of their dispute resolution provisions. Often confused with arbitration, mediation is a negotiation facilitated by a neutral third party. Unlike arbitration — a proceeding like a trial — mediation does not result in a final binding decision. And the mediator typically does not have any decision-making authority in the context of the mediation.

Instead, like any negotiation, the outcome of mediation is entirely in the hands of the parties. The mediator helps the parties by managing the exchange of information and other aspects of the negotiation process, like finding common ground and dispelling unrealistic expectations. In my latest article for the Daily Journal of Commerce, I provide some considerations parties involved in a mediation should keep in mind to maximize the possibility of a successful outcome. Read the full article here.

Originally published as an Op-Ed by the Oregon Daily Journal of Commerce on February 18, 2021.

Three Tips for Owners and Contractors to Improve Their Odds of Success in 2021

By Tamara Boeck on January 20, 2021 Posted in Construction Industry, General

While all of us begin 2021 still confronting the challenge of COVID-19, construction project owners face particular pandemic-related issues in their industry, including the need to maintain strict best practices for projects and manage scheduling and labor challenges for existing and new projects. In my latest article for the Daily Journal of Commerce, I provide owners and contractors with three tips to increase their chance of success in 2021:

Negotiate and agree to reasonable contract terms for new projects, and verify carefully the status with regard to completion of existing projects.
Evaluate your insurance and consider whether a performance bond may be necessary to try to ensure work completion.
Diligently address project events such as deadlines, requirements and forecasts.

Read the full article here.

Originally published as an Op-Ed by the Oregon Daily Journal of Commerce on January 14, 2021.