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.
Pandemic Creates Cause to Rethink Overlooked Contract Provisions
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
Strategic Tips That Parties Should Consider When Mediating Disputes
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
When to Have the Hard Talk About Setting Liquidated Damages
In my latest column for the Daily Journal of Commerce, I look at the concept of liquidated damages – in my experience one of the top five heavily negotiated (and litigated) clauses in a construction contract. Because a project owner’s potential delay damages are often difficult to determine with certainty at the beginning of
Allocate Payments Clearly to Minimize Construction Disputes
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
When to Prepare for Project Disputes? Always.
Originally published as an Op-Ed in the Oregon Daily Journal of Commerce on June 19, 2020.
Whether you are an owner, contractor, or design professional, construction disputes are, unfortunately, inevitable. Below are some tips to avoid potential pitfalls and help resolve disputes as efficiently as possible, whether before or after formal litigation (or arbitration) commences.
Registration Now Open for the WSBA Construction Section’s Annual CLE Seminar (Via Webinar on June 12, 2020, on Alternative Procurement and Coronavirus Impacts)
The Construction Section of the Washington State Bar Association, in partnership with Stoel Rives, will present its annual full day seminar (via webinar) on June 12. Co-chaired by Bart Reed (Partner at Stoel Rives), Brett Hill (Partner at Ahlers, Cressman & Sleight), and Ron English (Retired General Counsel of the Seattle Public Schools), the webinar
Construction Alert: Washington Court of Appeals’ Conway Opinion Provides New Guidance Regarding a Right to Cure, a Set-Off, and Recovery of Attorney Fees
In Conway Construction Company v. City of Puyallup, No. 80649-1-1 (May 4, 2020), the Washington Court of Appeals, Division 1, adopted Oregon’s Shelter Products, Inc. v. Steelwood Construction, Inc., precluding certain claims for defects in termination cases and limiting the justification for termination to those listed in the termination notice. It also held that Washington’s settlement statute protecting public owners, RCW 39.04.240, trumps an attorney fee provision in a contract.
In Conway, the City of Puyallup (“City”) contracted with Conway Construction Company (“Conway”) to construct certain roadway improvements. During the project, the City became concerned about construction defects. The City issued notices to Conway expressing its concerns. The City also observed unsafe work conditions and reported the safety violations to the Washington State Department of Labor & Industries. After issuing a series of notices, the City terminated Conway because of its defective work and safety violations.
Design-Build Lite – Construction Contracts with D-B Components
For most in the industry, when we think about a standard construction contract, we envision the construction documents being drafted by the architect and other design consultants. We tend to view the project as design-price-build, unless an alternative procurement mechanism has been selected such as design-build. Consistent with this design-price-build model, the contractor’s review of
Jane (or John) Hancock 2.0: Utilizing E-Signatures in the Construction Industry
In our increasingly electronic age, parties signing a construction contract, invoice, change order or other documents are as likely to do so by clicking on an “I agree” checkbox or inserting a digital signature, or e-signature, as they are to put pen to paper. In my first article for the Daily Journal of Commerce,