Many in the industry commonly utilized the AIA documents, often with significant revisions. The core of many of these documents are the AIA General Conditions (A201) with the parties frequently using the 2007 version as a starting point. AIA typically modifies its contract documents every ten (10) years and released its latest edition of the […]
One-Sided Arbitration Clause: Contractor’s Right to Unilaterally Choose Arbitration Upheld
Subcontractors are often asked to sign a subcontract giving the general contractor the right to, in its sole discretion, choose arbitration or litigation to resolve subcontract disputes. Many view these clauses as unfair, and whether such clauses are even enforceable is not settled, which means that state and federal courts across the country have come […]
Federal Arbitration Act Trumps Class Actions: Arbitration Agreements Mean What They Say
The U.S. Supreme Court in a 5-4 Decision authored by Justice Gorsuch recently found in favor of employer (not employee) rights when enforcing arbitration agreements. The Supreme Court ruled that employees could not ignore individual arbitration agreements and band together to challenge wage and hour or other labor law violations. The Court pointed out that […]
Establishment of the GMP: The Fatal Flaw
More and more construction contracts are CM-at-risk contracts with a Guaranteed Maximum Price (“GMP”). Contractors and Owners are increasingly relying upon a “cost plus with a GMP” format, such as the AIA A133 form, as a fair way to allocate risk. This is particularly true when the design drawings are evolving in the early days […]
State Contract Requires CMs Assume Uninsurable Risk?
The OFCC prepares form contract documents that are utilized on the State of Ohio projects that it administers. Recent changes to the CM-at-risk contract with respect to insurance are giving heartburn to the construction industry that bids that work. Section 10.6 now requires the CM to defend the OFCC with counsel specifically approved by the […]