Legal Insights Archive

Do I Need a Bond on My Next Project?

Many owner-developers choose to forego requiring a Performance and Payment Bond from their contractors in the hope of shaving another 1%-2% from the project cost. However, current market conditions suggest that owners rethink that decision. The current industry environment consists of busy contractors competing for a limited labor pool, and struggling to meet ambitious project […]

5 Ways to Attack a “Pay if Paid” Clause

“Pay when Paid” in many jurisdictions – including Ohio – means that while timing of payment may be delayed, there still is obligation to pay the sub within a reasonable period of time. In contrast, “Pay if Paid” (frequently utilizing words like “if” and “condition precedent”) means that not only timing, but also entitlement to […]

Unilateral Arbitration Agreements Pose Risks

It is increasingly common to encounter dispute resolution provisions that allow one party the right to unilaterally select arbitration or litigation after the dispute develops. These “unilateral arbitration” clauses are criticized by some as being unfair because they allow one party – usually the upstream party – to shop for a favorable venue once the […]

Ten Things to Remember During a Time of Growth

The construction industry is blessed with solid growth but challenged by a labor shortage. Those who remember these simple principles will do well. 1. Now is the time to demand Fair Contract language and secure it. If not now, when? It is much easier in good times to insist upon equitable contract terms. 2. Condition […]

Preemptive Actions for Construction Collections

In a quick-paced world, getting paid promptly is key to many construction businesses. In order to do so, preemptive actions on the front end of your relationships with contractors and general managers is best. Here are a few quick tips to help you get out in front of the curve towards successful collections. 1. Initially, get as […]