Another busy construction season is coming to a close. Invariably, there are case law developments and statutory changes to reflect upon each year. 2023 is no exception. 1. Old Defect Claim Crumbles Under Statute of Repose Ohio has adopted a statute of repose found at Ohio Revised Code §2305.131, which basically provides that all claims […]
Legal Insights Archive
Ten Tips to Manage Risk Under a GMP Contract
Best practices for an Owner-developer seeking to reduce risk to its Construction Manager under a Guaranteed Maximum Price (“GMP”) contract suggest adoption of these action items: 1. Contract Provided to CM in Advance to Price Risk Too much time and leverage is lost when contract negotiations begin after a Construction Manager (“CM”) is selected. A […]
Don’t Buy This Legal Advice
On Black Friday, 2011, Patagonia ran a full-page ad in the New York Times, stating, “Don’t Buy This Jacket.” The audacious ad told customers why they might not really need that new jacket and rejected consumerism. Defying the odds, consumers ignored the advice and Patagonia sales shot up 30%. So, here is my modest effort […]
Lien Waivers: Solution or Problem?
Subcontractors and suppliers deliver labor and materials to jobsites on credit with an understanding that payment will be forthcoming. Lien laws exist to secure that credit risk should the subcontractor or supplier not be paid timely for the value they provided to the project. Owners and contractors understandably want to ensure that payments get downstream […]
Should I Demand Arbitration or Not?
If a dispute goes on long enough, it will ultimately result in litigation or arbitration. Parties need to think about whether they would rather end up in court, or with a private arbitrator, or arbitration panel. Many of the well-accepted trade association contracts have a “check-the-box” approach, in which you need to say whether you […]