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
risk management
Considerations for Contesting a Frivolous Lien in Washington
For any owner or developer of a private construction project—and especially those looking to refinance or sell the property—lien claims can pose serious challenges as well as being a source of great frustration. In my latest column for the Daily Journal of Commerce, I outline some legal options for a Washington construction project owner…
Ways to Guard Against Insolvency Risks
The looming threat of a recession in the U.S. should serve as reminder to members of the construction industry that insolvency risks are real and need to be kept top of mind when moving forward with new construction projects. In my latest article for the Daily Journal of Commerce, I look at several options…
Inflation: The Elephant in a Construction Dispute or Contract Negotiation
Inflation has spared no part of the U.S. economy, but the construction market in particular is feeling its effects, and it is crucial that owners , contractors, and design professionals be cognizant of the risks presented by inflation and aware of and understand the options to mitigate them. In my latest column for the Daily…
War-fueled Construction Cost Increases May Warrant Look at Force Majeure
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…
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…
Managing Engineering Liability and Risk in Oregon
On February 25, 2022, my colleague Zachary Davis and I will be presenting as part of a HalfMoon Education live interactive webinar Managing Engineering Liability and Risk in Oregon. Zachary will present “Law of Engineering Malpractice,” an overview of professional liability claims. I will present “Understanding How Contracts Can Shift, Reduce (or Increase) Risk,”…
Every Construction Project Comes With Risk, but It Can Be Managed
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
…
A Key Battleground: Material Price Escalations and Supply Chain Disruptions
At the forefront of concerns for those in the construction industry is the escalation in material prices and disruptions to supply chains that were in large part a byproduct of the pandemic. Project owners and contractors want to understand their rights with regard to these risks and also how the risks should be apportioned. In…
Benefits and Risks of Involving a Project’s Contractor in The Design
The roles of designers and contractors are being combined for more and more construction projects, an approach that comes with both benefits and risks. Several methods of project delivery are commonly in use, none of which is entirely exclusive — different projects may include different and overlapping roles for owner, designer and contractor. In my…