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 […]
contracts 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 […]
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 […]
Is Your Owner’s Representative a Problem Solver or a Paper Pusher?
On large and complex construction projects, the overall purpose of an Owner’s Representative is to guide the Owner through the design and construction process. At the Project’s inception, an Owner’s Representative should provide valuable insight for the Owner to consider when making critical decisions, such as the selection of the design professional and construction manager. […]