A written teaming agreement is useful in defining the roles and responsibilities of a team of designers and contractors seeking to win a contract for a construction project. In my recent article for the Daily Journal of Commerce, I detail several key aspects of a well-drafted teaming agreement. Read the full article here.
Construction Contracts
Design-Build Certification
One should never stop learning, so next week I will attend a three-day seminar presented by the Design-Build Institute of America. If I complete the seminar and pass a test, I will become a Designated Design-Build Professional. The DBIA has an informative page about certification on its website.
In preparation for the seminar, I completed…
When “Non-Binding” LOIs Become Binding
A letter of intent (“LOI”) is often the first document in a proposed deal – a summary of a range of key terms or concepts for negotiation toward entering into a final, formal agreement. But what seems like a simple document can be much more than a mere list of possible terms to be discussed by the parties, and might just result in a final agreement in one side’s sole discretion. In some cases, an LOI can be an enforceable agreement to negotiate in good faith toward a final agreement based, at least in part, on its stated terms. Even those LOIs that specifically say they are non-binding may, in fact, be binding. For instance, an LOI could be enforceable in its own right if all material terms of a final agreement are set out in the LOI and the parties’ conduct suggests they treated the LOI as a final agreement. Rather than being a “safe haven” that can be terminated at will without liability, an LOI can present great risk and unintended consequences to the parties if not recognized and handled with care. Missteps in documentation and/or subsequent conduct of the parties along the way could result in blown deals and damages. Even an otherwise carefully and clearly drafted LOI may not be free from risk or unintended consequences.
Choice of Law Provisions Cannot Bypass California’s Prohibition on Jury Waivers
Last week, the California Court of Appeal ruled that a property owner was entitled to a jury trial in a dispute with a lender despite the fact that the loan agreement contained a jury waiver provision and a New York choice-of-law provision.
The case involved the San Francisco apartment complex known as the Rincon Towers. In 2007, the plaintiffs borrowed $110 million on a two-year loan to finance the acquisition. In 2009, the plaintiffs failed to repay the loan. The plaintiffs claimed that under the terms of the loan agreement they were entitled to a one-year extension of the maturity date. The lender disagreed and instead completed a nonjudicial foreclosure sale.
Joint Venturers Must Venture Carefully
There are good reasons to partner with other designers or contractors–even competitors–on construction and design projects. Perhaps such a collaboration gives you access to new geographical or industry markets, or enables you to take on a project of broader scope. A joint venture arrangement is a straight-forward way to collaborate in such instances. However, there…
Idaho Reads Force Majeure Clause Broadly as Written
In a ruling supporting common sense, the Idaho Supreme Court ruled that a county could not avoid the application of a broad force majeure clause in its development agreement with a developer based on the county’s denial of the rezoning required for the very development.
The key facts in Burns Concrete, Inc. v. Teton County…
Joint Washington/Oregon Construction Law Seminar – November 4, 2016
On November 4, 2016, my colleague, Andrew Gibson (from the Portland office of Stoel Rives), and I will co-chair a joint OSBA/WSBA construction law CLE, entitled Two States of Construction Law: Working in Both Washington and Oregon, located at the Heathman Lodge in Vancouver, Washington. This seminar will include a panel of knowledgeable lawyers…
Self-Imposed ADA Audits: The Developer’s Best Option
Recent rulings indicate that courts across the country view project owners’ and developers’ liability for ADA claims differently than they do other compliance violations. Owners’ attempts to raise questions of contractor negligence, breach of contract or breach of warranty are being rejected. So what can a project owner do? In my recent article for the …
Negotiating by a Thousand Texts: LOL? Think Again.
The law may be slow to evolve, but courts are beginning to embrace 21st century communication methods. The prospect of negotiating a deal by text message may seem like a laughing matter, but a Massachusetts court recently relied on parties’ email and text communications to determine the essential elements of an agreement for the…
Subcontractor Costs May Become Public Record in Federal Aid Contracts
Contractors who bid on public projects that utilize federal money can be surprised by additional administrative requirements they do not usually find in their contracts. In my recent article for the Daily Journal of Commerce, I discuss one of those requirements that may require you to disclose subcontractor agreements, and what you can do …