Tag: 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 caught … Continue Reading

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 … Continue Reading

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 … Continue Reading

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 … Continue Reading

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,” an … Continue Reading

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 waives … Continue Reading

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 … Continue Reading

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 … Continue Reading

When to Have the Hard Talk About Setting Liquidated Damages

In my latest column for the Daily Journal of Commerce, I look at the concept of liquidated damages – in my experience one of the top five heavily negotiated (and litigated) clauses in a construction contract. Because a project owner’s potential delay damages are often difficult to determine with certainty at the beginning of a … Continue Reading

Cyber Risk Update for Construction Companies

Scammers are always seeking new ways to target victims for Business Email Compromise (BEC) scams, where they leverage email to try to convince you to give them credentials, send them confidential information like W2s, send them money by changing things like direct deposit instructions, or give any other data that can help them profit from … Continue Reading

Legal Insights for Canadian Product Manufacturers and Suppliers Involved in Cross-border Construction Projects

Seattle and Bellevue’s strong real estate markets present a plethora of lucrative business opportunities for Canadian product manufacturers and suppliers.  Because Washington-based developers and contractors are perhaps more litigious than their Canadian counterparts,  Canadian-based product manufacturers and suppliers should consider a full spectrum of risk management and mitigation strategies before engaging in cross-border business activities. … Continue Reading

Here’s what building owners need to know following last year’s wildfires, earthquakes

California’s 2018 wildfire season — the most damaging and deadly on record — and a pair of earthquakes in Alaska can serve as case studies for Northwest property owners as to steps they can take to mitigate their risks in the event such disasters strike closer to home. In my latest article for the Seattle … Continue Reading

Cross-Laminated Timber Projects: The Pacific Northwest’s Next Big Timber Development

Cross-laminated timber (“CLT”) is a leading building technology that has been employed by European developers for decades, but the product’s use in the United States only recently took hold after its adoption by the 2015 International Building Code. A type of structural timber product composed of dimensional timber layers bonded together with structural adhesives, CLT … Continue Reading

Managing Risk from Gaps in Your Construction Project

Experienced project developers know that managing risk on a major project involves initial planning, design, construction, and commissioning. These tasks call for different skill sets — making it tempting to think of them as separate — but they need to be coordinated to prevent the creation of troublesome gaps in areas of responsibility. In my latest … Continue Reading

Condominium Comeback? Bullish-Developers Must Consider the Liabilities Associated with the Resurgence of Condominium Developments

The condominium embodies a missing price point in Seattle’s real estate market. As a result, we have noticed an uptick in the number of developers seeking legal advice regarding the potential risks associated with condominiums. In my first article for the Daily Journal of Commerce, I provide an update on Washington’s condominium laws, a summary … Continue Reading

Under California’s Right to Repair Act, Ignore Deadlines at Your Own Peril

In a very recent decision, the Fourth District Court of Appeal in Blanchette v. Superior Court affirmed the plain language of the Home Builder’s Right to Repair Act, holding that even a facially insufficient notice of defect triggers the obligation of a builder to respond within 14 days.  The statute, Civil Code section 895 et. … Continue Reading

One Unanticipated Cost of Being an Owner-Builder in California: Liability for Retained Control over Safety

Many times I hear from people who want to “save money” and serve as their own “owner-builder” under the exemption to the California Contractor’s Licensing law, which generally requires that any “construction” work over $500 to be performed by a licensed California contractor in the absence of an exemption.  (Bus. & Prof. Code section 7048).  … Continue Reading

“All Risk” Coverage Is Not Equal to “All Loss” Coverage Under Customary Provisions in California Builder’s Risk Policies

A common insurance question asked by our owner/developer clients when they discover that their completed project has defects is whether their own insurance will cover the cost to fix the defect or any damage from the defect.  While trying hard not to sound like the proverbial lawyer, we often have to say “it depends.”  What … Continue Reading
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