In an ideal world, a contractor performs a portion of the work on a project as provided for in a construction contract, the owner pays the contractor an installment payment for that portion of the work, and the parties continue similarly until the work is finished. However, many factors can upset the equation – changes to or an expansion of the scope of work of the project or execution of an additional contract for scope of work different than the original. With increasing complexity of a project comes increasing opportunities for confusion or disputes over the allocation of payments for the parts of a project. In an article for the Daily Journal of Commerce, I provide general guidance as to how parties can amicably resolve any issues that may arise. Read the article here.
Originally published as “OP-ED: Allocate payments clearly to minimize construction disputes,” by the Daily Journal of Commerce, July 16, 2020.