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
risk management
A Case in How to Delegate and Avoid Landowner Liability for Contractor Employees
By Colm Nelson on
In a case of first impression in Washington, the Washington State Supreme Court held that a landowner may satisfy its duty to guard an invitee “against known or obvious dangers on the premises by delegating the duty of protection to an independent contractor.” Eylander v. Prologis Targeted U.S. Logistics Fund, LP, 539 P.3d…
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…
5 Keys to Early Mediation Success When Project Disputes Arise
By Eric Grasberger on
Purchase agreements for construction, development, or real estate-related projects frequently offer parties the option of early mediation for settling a dispute before proceeding to arbitration or court litigation. While in my experience early mediation sessions tend to fail, additional mediation sessions held months later have a better chance of succeeding. In my latest column for…
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…
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…
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…
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…