Federal Construction Contracting Blog

JUNE 27, 2022

As a follow-up to my earlier post about the need to develop a settlement strategy when a claim is headed for litigation, I reviewed the various decisions of the Armed Services Board of Contract Appeals (ASBCA) for the first five months of 2022. Over 90% of the ADRs before the Board have resulted in settlements.

Claims 52

Claims Negotiation Contractors Spirit 52

Viewpoint Construction Technology

AUGUST 15, 2018

When you are looking for a solution, you have the ability to choose from a wide variety of vendors who claim to offer the best solution for one particular component of your construction enterprise resource planning. Adding a complicated ERP architecture risks an increase in the amount of time needed to coordinate with suppliers.

Software 130

Software Software Viewpoint Construction 130

Levelset

MAY 2, 2022

Levelset’s Contractor Profiles provide information on a contractor’s payment history, lien claims, and reviews from other contractors and suppliers. These references give suppliers a historical context to assess their risk. If you are a subcontractor, you can review your general contractor’s payment activity. Learn More.

Negotiation 52

Negotiation Materials Cash Flow Finance 52

Fieldwire

AUGUST 14, 2023

The practice dates back to the 1840s, dreamed up as a measure to reduce the owner’s risk and ensure that the project is fully completed according to the job specifications. Retainage is up for negotiation Retainage is not set in stone. Every contract is negotiable, including what percentage is retained and for how long.

Contractors 98

Contractors Cash Flow Lien Negotiation 98

Construction Dive

JULY 23, 2014

The court said risk and responsibility on construction projects is customarily allocated by a chain of contracts. Liability in negligence to non-contracting parties would upset this carefully negotiated balance. A contractor “must look to its agreement with the owner for damages if the project is not as represented.”

Drawings 62

Drawings Contractors Design Liability 62

Best Practices Construction Law

NOVEMBER 6, 2019

When the subcontractor was delayed, it submitted claim for $42,00 for the 21 days of delay damages. The contractor responded to that letter: “Execution of the Waiver and subsequent cashing of the check will not affect your ability to initiate and prosecute your claim against [us.” Wright & Morrisey, Inc. ,

Vermont 54

Vermont Lien Claims Negotiation 54

DebunkTheBIM

NOVEMBER 18, 2013

As in complying with the clients requirements, but also minimising the risk of unacceptable claims in the future and assisting the project delivery. · I had come up with various options of various risks and costs associated with each. Or maybe it is not, just another part of the same one.

BIM 48

BIM Risk Contract Claims 48

Construction Law Monitor

AUGUST 9, 2011

The Sloan court defines a liquidating agreement clause as a “process by which a general contractor may assert the claims of its subcontractors against the owner.” Pass Through Claims and Liquidation Agreements , Constr. Click here for Daniel S. Brennan’s The Construction Contracts Book. Liquidating Agreement.

Agreement 57

Agreement Contract Insurance Construction 57

Job Order Contracting

OCTOBER 18, 2016

The owner estimate or detailed analysis must be completed before receipt of the Contractor’s proposal and before negotiations take place. The owner estimate will be used to evaluate the reasonableness of the Contractor’s proposal and will serve as the owner’s pricing and quantity objective during negotiations.

Contract 100

Contract Procurement Negotiation Project Management 100

Construction Lawyer

APRIL 3, 2012

In other words, you use the stuff we post here at your own risk. Federal Court dismisses subs claim against GC because of arbitration provision. Because LaSalle was not in privity of contract with USACE, LaSalle needed VETS to sponsor its claim against them. If the net recovery on the claims were to exceed $4.3

Claims 40

Claims Agreement Illinois Subcontracting 40

Best Practices Construction Law

NOVEMBER 21, 2019

As you may be aware, one of the greatest risks on a construction project involves the payment process. Contractors have a means of shifting the risk of non-payment by the owner to its subcontractor by including a certain payment provisions in the subcontract agreement. Courts across the country vary in their treatment of these issues.

Contract 77

Contract Subcontracting Drafting Virginia 77

Construction Law

MARCH 1, 2024

Guest editor Managing change control following the Building Safety Act 2022 Guest Editors Roddy Cormack and Katie Percy of Dentons UK and Middle East LLP warn that the new change control regime introduced under the Building Safety Act could make allocating and managing contractual risk significantly more challenging.

Insurance 40

Insurance Claims Safety Legal 40

Job Order Contracting

APRIL 15, 2018

Change orders easily increased project costs by 50% or more, and claims and litigation were the norm, versus the exception. Not Time and Materials, not cost-plus-fee, not Construction Manager @ Risk…. • Incentive to perform efficiently. Smaller projects were taking up to 1 year to procure creating a growing backlog of work.

Contract 100

Contract Change Orders Procurement Estimating 100

Construction and Infrastructure Law

JANUARY 9, 2020

Indemnification clauses appear in nearly every agreement, but they are often overlooked as mere boilerplate provisions after the parties have painstakingly negotiated all of the other terms. A standard or canned indemnification clause might work to undo all of the effort that has gone into properly allocating risk.

Liability 69

Liability Agreement Drafting Insurance 69

Constructlaw

JUNE 17, 2022

Most frequently, the Economic Loss Doctrine bars negligence claims. Its outer bounds begin with intentional torts, and most jurisdictions do not apply the Economic Loss Doctrine to fraud claims. Dream Finders Homes claimed that Weyerhaeuser misrepresented the nature of the joists and claimed remediation costs and legal expenses.

Colorado 52

Colorado Tennessee Claims Contract 52

Help Everybody Everyday

MARCH 6, 2009

. “No damages for delay” clauses that remove your ability to claim actual damages for delay beyond your control and imposed by an upstream party. Language that puts artificial limits on your ability to make a claim, including allowing the upstream party or its agent to be the judge of your claim’s validity.

Contract 48

Contract Claims Legal Lien 48

Construction Law

JUNE 9, 2020

That means updating and reviewing risk assessments and ensuring that on site social distancing and hygiene requirements are supervised and complied with. The key advice being given to companies a month ago still applies – make sure that all possible measures are taken to protect workforces.

Contract 52

Contract Site Claims Contractors 52

Autodesk Construction Cloud

JANUARY 19, 2022

If Project B can’t pay its vendors or crew on time, the whole project is at risk. Negotiate better contract terms. It’s important to take the time to negotiate the best contract terms possible. To learn more about negotiating contracts and getting paid on time, check out this podcast episode , featuring Karalynn Cromeens.

Cash Flow 59

Cash Flow Management Profitability Change Orders 59

Autodesk Construction Cloud

NOVEMBER 15, 2021

Owners pass on certain risks (contractually) to general contractors, who may do the same thing when hiring specialty contractors. For this reason, construction professionals must find better ways to craft and negotiate agreements. Karalynn also emphasizes the importance of negotiating who takes on certain risks and liabilities.

Contract 52

Contract Contractors Negotiation Subcontracting 52

Levelset

APRIL 8, 2022

On projects like this, property owners typically count on an insurance claim to pay for the work – they may not have cash on hand to pay you out of pocket. Knowing what to expect from insurers gives you some leverage as a contractor, and can help you protect your business against financial risk on restoration projects. Know your role.

Insurance 52

Insurance Claims Agreement Lien 52

Levelset

APRIL 8, 2022

On projects like this, property owners typically count on an insurance claim to pay for the work – they may not have cash on hand to pay you out of pocket. Knowing what to expect from insurers gives you some leverage as a contractor, and can help you protect your business against financial risk on restoration projects. .

Insurance 52

Insurance Claims Agreement Lien 52

Construction Marketing Ideas

FEBRUARY 22, 2015

Some create greater risks of making the budget if we encounter changes, delays and impacts. We should appreciate the risks before bidding and not underestimate indirect costs of staff to deal with these situations. Therefore, it is difficult to negotiate with them as we would with another contractor. Some are fairer than others.

Contract 48

Contract Construction Claims Legal 48

Construction Specifier

JUNE 19, 2020

Such an assumption may be fraught with risk that may not be revealed until a problem arises during construction, such as submittal of a claim. The same thing can happen when negotiating changes in the contract price during construction. Increased potential for changes, claims, and disputes.

Documentation 52

Documentation Drafting Contract Claims 52

Levelset

APRIL 15, 2022

When a property owner files an insurance claim to cover a restoration or roofing project, the owner typically deals directly with the insurance company. An assignment of benefits , or AOB, is an agreement to transfer insurance claim rights to a third party. AOBs take the homeowner out of the claims equation. Setting up an AOB.

Insurance 52

Insurance Contractors Lien Claims 52

Construction and Infrastructure Law

JANUARY 9, 2020

Indemnification clauses appear in nearly every agreement, but they are often overlooked as mere boilerplate provisions after the parties have painstakingly negotiated all of the other terms. A standard or canned indemnification clause might work to undo all of the effort that has gone into properly allocating risk.

Liability 52

Liability Agreement Drafting Insurance 52

Building Radar

OCTOBER 8, 2024

Contractors must be familiar with the payment schedules, conditions for payments, and the process for claiming payments in case of disputes. Ensuring compliance with these payment terms can significantly reduce the risk of financial disputes. Payment Terms VOB also stipulates clear payment procedures.

Contract 52

Contract Construction Documentation Project Management 52

Construction Law

OCTOBER 3, 2022

Claims for extensions of time was the most common cause of disputes, reported by 50% of respondents. Contracts were being used that were held to inappropriately allocate risk, which was probably being obscured within the preponderance of complex procurement and contracting processes.

Industrial 52

Industrial Contract Consulting Negotiation 52

Construction Law Monitor

SEPTEMBER 10, 2015

An indemnification clause obligates one party to compensate the other party for certain losses or damages resulting from third-party claims. To help determine this, you should have a cost breakdown of the entire project ready as part of the contract negotiation process. Indemnification. Payment Conditions. ADR Clause.

Contract 40

Contract Construction Compensation Liability 40

Construction Law Monitor

SEPTEMBER 10, 2015

An indemnification clause obligates one party to compensate the other party for certain losses or damages resulting from third-party claims. To help determine this, you should have a cost breakdown of the entire project ready as part of the contract negotiation process. Indemnification. Payment Conditions. ADR Clause.

Contract 40

Contract Construction Compensation Liability 40

NH Construction Law

FEBRUARY 25, 2023

If the Seymour case shuts out a claim against the bank, do owner/borrowers have a legal claim against the inspector, with whom they have no contract? Nor does a negligence claim against the inspector appear promising. That puts the owner/borrower in a pickle. Don’t count on it. In Coachman Estates of Barrington, LLC v.

Banking 40

Banking Inspections Construction Lien 40

Constructlaw

JUNE 30, 2021

However, since these are not only intracompany concerns, it is critical to keep these issues in mind for current projects and when negotiating future contracts. As for future contracts, remember to consider COVID-19-related issues and concerns when allocating risk. You may still incur COVID-19-related mitigation costs on current jobs.

Site 52

Site Pennsylvania Employment California 52

Construction Law Monitor

NOVEMBER 2, 2011

Here both parties need to negotiate terms to better protect when a dispute arises. There are a number of provisions which could be contained in a prime/subcontractor contract that need to raise a red flag when present and should be negotiated by either party so as to keep the contract from becoming one-sided. Notice Provisions.

Contract 56

Contract Change Orders Lien Contractors 56

Construction Cost Estimating

MAY 12, 2015

Help in making valuations and claims and make sure that these are compliant with appropriate records. Recognize possible risk and opportunities and elevate these as correct. Excellent negotiation skills with both internal and external customers. Help in making the valuation of variations.

Cash Flow 40

Cash Flow Commercial BIM Contract 40

Building Information Management

APRIL 10, 2015

Items that are not in the UPB can be negotiated, priced, and added to the UPB at any time. Shared Risk-Reward. After the cost estimates are completed, the contractor and user negotiate to resolve differences in line items and/or quantities in their respective estimates. Reduced or Eliminated Claims. Performance-based.

Contract 40

Contract Renovating Bidding Construction 40

Constructlaw

DECEMBER 7, 2020

Reynolds: The COVID-19 pandemic’s impact on the global economy has led to an increase in breach of contract claims, and a parallel rise in novel breach of con­tract defenses focused on excuses for non-performance. Halprin: At the risk of stating the obvious, the pan­demic has had a tremendous impact on filings.

Claims 40

Claims Insurance Bankruptcy Legal 40

NH Construction Law

MAY 20, 2023

The main purpose of such clauses is to shift the risk of owner nonpayment, whether due to owner insolvency or owner breach, from the contractor to the subcontractors. Skanska USA Building, Inc. , 730 F.Supp.2d 2d 401, 421 (E.D. 2010), didn’t think so. ” In re Estate of Kelly , 130 N.H. 773, 781 (1988).

Contractors 40

Contractors Bargains New Hampshire Contract 40

Levelset

SEPTEMBER 6, 2022

Among a number of other issues, insurance risk shifting is a concern for carriers. The policyholder will also have certain duties to perform if an insurance claim is incurred and reported. In addition, any other additional insured needs should be viewed as part of the company’s risk transfer program. Your bottom line.

Insurance 52

Insurance Liability Construction Contract 52