In the busy world of commercial real estate, buyers and sellers may be unable to complete all contractual obligations before closing. In those instances, parties often identify certain “post-closing” matters in the contract. Typically, if those provisions are not carefully drafted to “survive” the closing, then the terms may merge with the deed and be deemed satisfied at closing. However, in a 2022 Oregon case, Freeborn v. Dow, the Oregon Court of Appeals identified a nuance to that rule and explained that certain contractual matters may survive closing and not merge with the deed, regardless of the presence or lack of a survival clause.
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
Trying Large Construction Disputes CLE—Seattle
On October 6, 2023, I will be on the panel “Trying Large Construction Disputes,” to be presented during The Seminar Group’s 30th Annual Washington Construction Law conference on October 5 and 6, 2023, in Seattle or online. Intended for anyone who practices construction law, desires to practice construction law, or is confronted with matters involving
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
4 New Washington Bills Affecting Common Interest Communities That Developers Should Be Aware Of
Washington’s legislators had their eye on common interest communities (CICs) during the 2023 regular session, which ended on April 23, 2023. Three bills relating to or affecting CICs become effective on July 23, 2023. One became effective immediately. Here is a brief summary of the new laws.
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
Efforts Expected of a Contractor When Efforts Clauses Are in Dispute
A construction project can be delayed for a multitude of reasons. Where the cause of the delay is not force majeure, or other excusable delay by a contractor, and where the contractor has some fault, what level of actions must a contractor take to satisfy the terms “best efforts” or “reasonable efforts” or “commercially reasonable
What Parties Ought To Consider When Considering Arbitration Provisions
When reviewing a proposed design or construction contract, the responding party will often do a cursory check to see whether the contract proposes arbitration or litigation for dispute resolution. So long as the proposed method generally aligns with that party’s preferences, it will not look further at the specifics of the proposed process. For the uninitiated, this can lead to surprises when a dispute arises, especially when it comes to issues like whether the arbitration will be held before a single arbitrator or a panel of arbitrators, the rules that will apply to the arbitration, and the scope of discovery.
Construction and design attorneys, on the other hand, spend many working hours (and sometimes nonworking hours) contemplating these exact issues. I have developed a checklist of items that I advise my clients to consider in their arbitration provisions. The combined goal of these considerations is eliminating surprises if a dispute arises and balancing efficiency with the desire for a fair process. Typically, that checklist includes the following topics:
- Rules applicable to the arbitration
- Single arbitrator or panel of arbitrators?
- Scope of discovery
- Maximizing opportunity for resolution in a single proceeding
The full article, including details on each of these topics can be found at What Parties Ought To Consider When Considering Arbitration Provisions | Stoel Rives LLP.
This article was originally published in by the Daily Journal of Commerce on April 20, 2023.