Construction project owners, contractors, and design professionals sometimes fall into the trap of not giving careful consideration to the risks specific to a given project and will wait until an actual dispute arises before closely analyzing the dispute resolution provisions in a design or construction agreement. In my latest article in the Daily Journal of
Construction Contracts
Lesser-Known Insurance Policies for Addressing Risks of Construction Projects
By Sean Gay on
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
By Zachary Davis on
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…
The Role of Liquidated Damages Provisions in Construction Contracts
By Chris Burrows on
Posted in Construction, Risk Management
The glue that holds together a construction project—an undertaking that can be massive, with millions of dollars at stake and the coordination of thousands of people required—is the construction contract, the primary purpose of which is to provide a path for parties to apportion the risk involved in any construction at the front end of…
Don’t Let Disputed Change Orders Derail Your Construction Project
By Eric Grasberger on
Posted in Claims & Disputes, Construction
A fact of life for those involved in construction projects, change orders can be a challenge even when the owner and contractor agree on the scope, price, and schedule impacts associated with the change but much more difficult when the parties disagree on those terms. Options available to resolve a dispute include handling it in…
Follow-Up: Should Attorneys Use Artificial Intelligence to Draft a Construction Contract?
By Eric Grasberger on
Posted in Construction, Construction Contracts
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
By Bart Reed & Evan Brown on
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’
By Andrew Gibson on
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
By Bart Reed on
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
By Colm Nelson on
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…