owners 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 […]

Ohio Supreme Court Rules that Construction Defects are Not Covered Under CGL Policy

The Ohio Supreme Court has again ruled that owners, contractors and subcontractors in Ohio have little protection from construction defects. The construction industry has long relied upon Commercial General Liability (“CGL”) policies to protect against personal injury or property damage losses, including those flowing from construction defects. Large premiums are paid every year to the […]

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 […]

The Ten Commandments of Construction Law

A construction project can be “a problem in progress.” What separates successful owners, contractors and subcontractors from the others is their ability to effectively manage those problems. Practitioners advising the construction industry frequently consult the relevant contract documents when dealing with these problems, but there are several key statutes that trump the contract that counselors […]

Cranes: Who Owns the Project Air?

The recent surge of construction activity in urban settings has accelerated the use of cranes in tight spaces. Frequently, large cranes find themselves moving over neighbor’s buildings. Unfortunately, there is little definitive law that tells us exactly what the obligations of the crane operators are as to the neighbor’s property and what “air rights” may […]