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
A New Year’s Resolution: More Consideration of Time Limits
In a world of pure cooperation, if the owner of a construction project or a contractor causes a problem, the responsible party would admit fault and make amends—rendering the negotiation of a construction contract unnecessary. In our less than ideal world, owners and contractors have adverse interests, the party at fault is not always clear
Another Risk Management Tool for Private Owners in a Volatile Construction Market
Traditionally, private owners of construction projects have not considered bonds — either payment or performance bonds by the general contractor — because of the additional cost and because they felt confident that the contractors and their subcontractors, suppliers and vendors on their projects would meet the obligations of the contract terms. However, in today’s volatile
‘Project Float’: Who Owns it and What Should Be Done About It?
Construction projects are complex and often experience delays. The party responsible for the delay can find itself subject to potentially severe consequences. There are various ways project owners and contractors can cause project delays, and each party wants to “own” the project float to be able to apply the project’s extra schedule time toward its
Warning Signs that a Contractor May Be Overextended
If you are involved in the construction industry, like it or not risk management is part of your job. From home office executives to workers in the field, each person is expected to manage schedule, cost, and safety risks. While these risks are common, the recent prolonged period of economic growth has created new challenges,
Plan Ahead for Project Challenges in 2020
In the event of a near-term slowdown in the U.S. economy, analysts forecast that any resulting decline in construction starts will nevertheless leave the level of activity in that industry sector “close to recent highs.” As a result, project owners and general contractors already facing a strong demand for
Five Reasons to Get the Contract Signed Before Construction Starts
In the Pacific Northwest, Mother Nature can play a large part in whether or not a construction project will be completed on time and on budget. The importance to both owners and contractors of starting a construction project in order to take advantage of a window of good weather or other factors can make finalizing
California CSLB’s Reminder for C-57 Licensees
In the midst of a serious California drought, water concerns have brought with it a rise in well drilling. Today, the California Contractors State License Board sent out a timely reminder that C-57 well drilling licensees in the Central Valley must register portable internal combustion engines of 50 horsepower or greater used to power drilling
Subcontracting Pitfalls: Making The Flow Down Work
In my latest Daily Journal of Commerce Construction column, I discuss the recent rash of cases involving the question of whether subcontractors are bound by the terms of a project’s prime construction contract. In many of these situations, subcontractors contend that their subcontracts give them rights, remedies or defenses against the prime contractor that the
LEED-igation: Fact or Fiction?
While many in the Pacific Northwest claim to have seen Sasquatch or Bigfoot, few have any evidence to substantiate the existence of this fabled creature. Regardless, hope rings eternal for some that one day this beast will be catalogued as a genuine, albeit elusive, example of the “missing link” between man and ape.
Applying this