In the wake of the Russian invasion of Ukraine and economic sanctions imposed by countries around the world in response, supply chain disruptions and the resulting scarcity of construction have resulted in price escalation that threatens construction project budgets. To allocate the risk of these sorts of cost increases, project owners and contractors may use
force majeure provision
Every Construction Project Comes With Risk, but It Can Be Managed
By Karl Oles on
Posted in Construction Contracts, Risk Management
In my latest article for the Daily Journal of Commerce, I provide a few suggestions for contractors, and perhaps project owners as well, to manage risk through a construction contract. Provisions that can be included in a contract to achieve that end might include:
- The owner limits its potential claims to direct damages and
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