Limitation of liability (LOL) clauses are a standard fixture in contracts involving architects, engineers, and other design professionals—particularly because these parties often have limited assets and depend on such provisions to manage risk. However, Washington legal authority suggests these clauses may not offer the ironclad protection many expect.
While LOL clauses can shield design professionals
Developers, owners, and contractors would all be wise to take note of Senate Bill 426, currently under consideration in the Oregon legislature.
SB 426 addresses wage theft in the construction industry. If enacted, it would impose joint and several liability on the owner and prime contractor for unpaid employee wages – including fringe benefits
Key Considerations in Subcontract Negotiations
Negotiating subcontracts presents challenges for both general contractors and subcontractors. General contractors must balance responsibilities to owners and subcontractors while managing risk. Subcontractors, often with limited negotiation power, should focus on key risk-shifting provisions.
Prime Contract Role
Subcontracts often include “flow down” clauses, requiring subcontractors to assume general contractor obligations.
As 2024 approaches, developers, builders, and designers are urged to reassess their insurance strategies, as coverage mistakes can lead to severe denials during claims. Key pitfalls include relying on standard insurance forms, informal broker assurances, and neglecting to scrutinize policy endorsements. Best practices for effective risk management involve securing proof of insurance via actual policy
Parties negotiating a design and construction contract for a large project will often leave for the end discussions of a few provisions that one side or the other has characterized as “deal-breakers.” Though the deal may be doomed to fail, one of the parties may also make a concession or concessions, have its bluff called
It is no secret that the price of construction materials has increased dramatically over the last three years. The price surge has been attributed to COVID-19, foreign wars, and other events throughout the globe, such as a Suez Canal blockage and an unprecedented ice storm in Texas, among other reasons. Consequently, through the use of
Originally published by the Daily Journal of Commerce on December 6, 2022.
With more and more corporate tenants and institutional owners looking to reduce their carbon footprints, clean energy improvements in initial project development as well as upgrades to existing projects have become more appealing. However, with interest rates and material costs on the rise
The Washington Supreme Court recently published an opinion that appears to invalidate any homebuyer warranty that requires the buyer to file suit in less than six years. In Tadych v. Noble Ridge Construction, Inc., the owners of a custom home sued their builder for breach of warranty three years after occupying the home. Their