In their focus on starting a construction project, developers, designers, and contractors can fall prey to unintended consequences arising from their deferral to and use of an “industry standard” contract form—as opposed to taking the time to precisely tailor the contract to the project’s needs and risks. In my latest article for the Daily Journal
Arbitration Provisions to Consider in a Proposed Design or Construction Contract
The party responding to a proposed design or construction contract may satisfy itself that the contract proposes arbitration or litigation to resolve any disputes and leave it at that—as long as the method of resolution is generally aligned with the party’s preferences. In order to eliminate surprises for their clients if a dispute arises and
Efforts Expected of a Contractor When Efforts Clauses Are in Dispute
A construction project can be delayed for a multitude of reasons. Where the cause of the delay is not force majeure, or other excusable delay by a contractor, and where the contractor has some fault, what level of actions must a contractor take to satisfy the terms “best efforts” or “reasonable efforts” or “commercially reasonable
What Parties Ought To Consider When Considering Arbitration Provisions
When reviewing a proposed design or construction contract, the responding party will often do a cursory check to see whether the contract proposes arbitration or litigation for dispute resolution. So long as the proposed method generally aligns with that party’s preferences, it will not look further at the specifics of the proposed process. For the uninitiated, this can lead to surprises when a dispute arises, especially when it comes to issues like whether the arbitration will be held before a single arbitrator or a panel of arbitrators, the rules that will apply to the arbitration, and the scope of discovery.
Construction and design attorneys, on the other hand, spend many working hours (and sometimes nonworking hours) contemplating these exact issues. I have developed a checklist of items that I advise my clients to consider in their arbitration provisions. The combined goal of these considerations is eliminating surprises if a dispute arises and balancing efficiency with the desire for a fair process. Typically, that checklist includes the following topics:
- Rules applicable to the arbitration
- Single arbitrator or panel of arbitrators?
- Scope of discovery
- Maximizing opportunity for resolution in a single proceeding
The full article, including details on each of these topics can be found at What Parties Ought To Consider When Considering Arbitration Provisions | Stoel Rives LLP.
This article was originally published in by the Daily Journal of Commerce on April 20, 2023.
Can We Avoid Court? Construction Mediation Agreement Considerations
Originally published as an Op-Ed by the Oregon Daily Journal of Commerce on December 15, 2022.
A common feature of construction contracts is a clause requiring formal mediation of disputes relating to the project. Sometimes the clause is aspirational, merely “requiring” that the parties consider mediation. Other times, however, the clause is designed as a binding
Washington Supreme Court Ruling Could Bring Changes to the Construction Industry
Originally published by the Seattle Daily Journal of Commerce on November 3, 2022.
In a 5-4 decision, the Washington Supreme Court recently ruled in Tadych v. Noble Ridge Construction, Inc. that a contract provision providing a one-year limitation period for filing a construction defect lawsuit was “unconscionable” and therefore unenforceable.
The court’s ruling revives a
Can a Contractor Simply Walk Off a Job?
Originally published as an Op-Ed by the Oregon Daily Journal of Commerce on October 20, 2022.
“It depends”—two words clients hate to hear from their lawyers. “It depends” is (regretfully) also the answer to the question posed in the headline: “Can a contractor simply walk off a job?”
While this topic is often covered by
The Importance of Third-party Beneficiary Clauses in Contracts
For anyone building a dream vacation home, renovating an existing commercial structure, or developing a multimillion-dollar, mixed-use project, construction contract terms are of utmost importance. One often overlooked clause covers the contractual “third-party beneficiary” (TBP)—a person or entity who, though not a party to the contract, stands to benefit from the contract’s performance. Interpretations of
Considerations for Contesting a Frivolous Lien in Washington
For any owner or developer of a private construction project—and especially those looking to refinance or sell the property—lien claims can pose serious challenges as well as being a source of great frustration. In my latest column for the Daily Journal of Commerce, I outline some legal options for a Washington construction project owner
Ways to Guard Against Insolvency Risks
The looming threat of a recession in the U.S. should serve as reminder to members of the construction industry that insolvency risks are real and need to be kept top of mind when moving forward with new construction projects. In my latest article for the Daily Journal of Commerce, I look at several options