It’s been more than 20 years since the LEED standard was introduced, and green building has now become a significant percentage of new U.S. commercial real estate construction. The benefits of green building techniques and products have made LEED certification a hot commodity and changed the construction industry. But there are also risks involved if
Construction Contracts
“From, For, and Against”: What’s the Difference?
Indemnity provisions are often among the most negotiated and least understood provisions of commercial contracts, and construction contracts are no exception to this rule. Despite, and perhaps because of, the importance of these clauses, they have evolved into an almost impenetrable jumble of legal terminology.
This jumble of words is not, however, without meaning. Although…
Termination Clauses a Must for Owners
The recent termination of the joint venture of Skanska-Hunt from the Washington State Convention Center project (article here) is a good reminder of the importance of well-written termination clauses in your owner-contractor contracts. The reasons for termination (or “severance,” a slightly kinder word) can be many, including failure to agree on pricing (the reason…
Recent Survey Lauds Integrated Project Delivery (IPD), But Are There Risks with IPD?
According to an October 15, 2015 report published in the Engineering News-Record, covering the broadest survey performed to date on IPD, the industry is moving toward more collaborative contracting schemes, with what appears to be an overwhelmingly positive response strongly supporting risk and reward sharing multi-party agreements. Conducted by the University of Minnesota and…
Expect the Best, Prepare for the Worst – Drafting Construction or Design Contracts
When embarking on a new design or construction contract, all parties hope the road will be smooth and that any bumps can be handled by agreement. However, real disputes do occur. When they do, a well-crafted contract can provide rules for resolution. It is best to formulate those rules before disputes arise. In my recent…
Yes, Contractor Licensing May Be Required Under California Law Even if the Contractor Does Not Physically Build Anything Itself
It seems that almost weekly, and certainly monthly, I receive a call or inquiry from colleagues and/or prospective clients as to whether a license is really required if the prospective “contractor” is not actually building anything but is merely facilitating a “deal” or is hiring otherwise qualified and licensed contractors and trades. Virtually every time…
Hate Negotiating? Think It is a Waste of Time? Think Again. Seven Habits of Successful Negotiators
If you dislike negotiating, you are not alone. But successful negotiators understand and embrace the opportunities that a negotiation presents. In my recent article for the Daily Journal of Commerce, I discuss seven habits of successful negotiators that can help you successfully conclude your construction-related negotiations. Read the full article here.
“Hate Negotiating? …
Protections Against Subcontractor Defaults
Subcontractor default is a construction project nightmare that can result in significant additional costs and delay completion of the project. But there are two chief options to protect against such risks — performance bonds and subcontractor default insurance. In my recent article for the Daily Journal of Commerce, I outline the unique characteristics of …
Public Contracting Code Reminders
Developing public projects in Oregon requires an understanding of the Oregon Public Contracting Code and the complexities of procurement requirements. In my recent article for the Daily Journal of Commerce, I discuss four facets of public contracting that can help you successfully navigate the procurement terrain. Read the full article here.
“Public Contracting…
The Trend Towards Liability Waivers in Design and Construction
The increasing presence of liability waivers in construction and design contracts is of concern to owners, general contractors and architects alike. In my recent article for the Daily Journal of Commerce, I address a variety of clauses that limit liability and offer tips for negotiating more reasonable conditions and limits. Read the full article …