The new RCW 39.04.360, effective June 6, 2024, outlines protections and payment assurances for contractors, subcontractors, and suppliers involved in public and private construction projects in Washington. This statute mandates timely issuance of change orders for undisputed additional work, imposes interest on delays, and clarifies the rights of aggrieved parties to seek appropriate relief, including
Lesser-Known Insurance Policies for Addressing Risks of Construction Projects
Bringing a construction project to fruition involves significant risks to project owners, designers, and contractors. Many of those risks will be allocated in the parties’ contracts, in turn requiring those parties to obtain insurance and further allocating risks to insurance companies. Several commonly used insurance policies are at the heart of any construction project insurance
Strategies for Getting Difficult Construction Contracts to the Finish Line
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
Follow-Up: Should Attorneys Use Artificial Intelligence to Draft a Construction Contract?
Over this past summer, our colleague Mario R. Nicholas penned an article for the Daily Journal of Commerce entitled “Can Artificial Intelligence Be Trusted to Draft a Construction Contract?” It is a great read, and we borrow from it here in many places.
In his article, Mario principally focused on why chatbots like
On Notice: Why Notice and Claim Procedures in Construction Contracts Matter
Construction contracts generally outline when and how contractors should notify parties about potential claims for additional compensation and/or time. These provisions are intended to provide project stakeholders with the information necessary to address unforeseen circumstances and streamline claim resolutions within the project rather than resorting to legal actions. However, in some cases, the contract provisions
Beware of ‘Standard’ Construction Contract Terms; Nothing Is ‘Standard’
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
New Washington Law Applies Limitations to Retainage on Private Construction Projects
In the construction industry, “retainage”—the practice of withholding by an owner or contractor a portion of the funds that are due to a contractor or subcontractor for a construction project until its completion—is a term frequently negotiated in contracts for private construction projects as a means to mitigate the risk of default since the monies
Preconstruction Services, Project Savings, and Great Expectations
Many standard construction contracts include a placeholder for incentives for a contractor that completes a new project on time and under budget. Possible rewards include early completion bonuses and/or sharing in the project savings, if any, which can be calculated in several ways. In my latest article for the Daily Journal of Commerce, I
Can AI Be Trusted to Draft a Construction Contract?
As alluring as it may be to enlist the help of an artificial intelligence (AI) chatbot, such as ChatGPT, to prepare a construction contract, even the chatbot will advise against using AI to do so, saying it is “highly recommended to hire a construction attorney rather than relying solely on ChatGPT or any AI model
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