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
Construction
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…
OSHA’s New Dust Exposure Rule and Its Potential Impact on Construction Industry
On March 24, 2016, the Occupational Safety and Health Administration (“OSHA”) issued its final rule related to admissible exposure to respirable crystalline silica. The new rule, which dramatically reduces the permissible exposure limit (“PEL”) of respirable crystalline silica from 250 micrograms per cubic meter of air to 50 micrograms per cubic meter of air (an…
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…
Think all Oregon construction defect claims are governed by the same 10-year statute of repose? Think again.
In Shell v. Schollander Companies, Inc., the Oregon Supreme Court affirmed a line of appellate decisions distinguishing between defect claims arising out of construction performed for an owner and defect claims arising out of an owner’s purchase of an existing structure. In Schollander, the homeowner sought recovery for defects in the construction of…
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? …
NYC Crane Collapse Likely to Fuel Crane Objections and Easements
On Friday, February 5, one man died and three were injured when a 565-foot crane toppled in gusty winds in lower Manhattan, not far from the World Trade Center. The investigation will likely take weeks to months as experts try to reconstruct whether the engineering, erection, operation or manufacture of the crane, or some combination…
Contractors Are Running into Unexpected Trouble as Local Air Quality Management Districts Stretch the Limits of Their Authority
It has long been the case that the California Air Resources Board (“ARB”) and each of California’s local Air Quality Management Districts (“AQMDs”) may regulate sources of portable emissions. However, about two decades ago, the legislature recognized that it was often impractical and too costly for businesses traveling throughout the state to acquire permits for…
Contractor Beware When Working With Developers to Assure Mechanic’s Lien Rights
Interpreting Utah’s former mechanic’s lien statute, the Utah Court of Appeals has held that a contractor that contracted with and provided construction services for a developer could not maintain a valid mechanic’s lien on property owned by a third-party landowner. In Reeve & Associates, Inc. v. Tanner, 2015 UT App 166 (2015), the owners of…