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 […]
Legal Insights Archive
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 […]
Are You Prepared for the Risks of Design Delegation?
Design build contractors are generally familiar with the risk they are assuming under the traditional design-build model in which the contractor is responsible for the design, as well as the construction of the design his team has created. However, contractors are less familiar with the risks that are assumed under a design-bid-build model in which […]