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Avoiding Construction Cost Overruns

Job Order Contracting

Avoiding construction cost overruns is best accomplished by, Getting the front-end of capital investments right, including using reliable reference class information to create unbiased cost estimates. The more localized and granular the information the best. Optimally a locally researched detailed unit price cost book (UPB) is used.

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#127:  Subcontract "Flow Down" of Prime Contract Terms

NH Construction Law

Commercial construction subcontracts frequently incorporate by reference provisions of the prime contract between the owner and the general contractor, often with language requiring the subcontractor to assume toward the general contractor all duties owed by the general contractor to the owner. Turner Construction Co. , 560 F.Supp.

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#96:  Payment Bond Sureties and "Pay-if-Paid" Subcontracts

NH Construction Law

If the principal is a general contractor with a “pay-if-paid” clause in its subcontracts, must a subcontractor wait for the general contractor to be paid before it can collect on a payment bond? It is often said that a payment bond surety may assert all of the contractual defenses to payment enjoyed by its principal. 33, 614 S.E.2d

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Forum Selection Clauses in Construction Subcontracts Require Careful Drafting

Construction Lawyer

Ryan, in turn, subcontracted part of the work to Welch, a Hawaii corporation. The subcontract between Ryan and Welsh: does not contain any provision by which the parties explicitly consent to, or agree upon, jurisdiction, venue, or any particular "forum" in the case of litigation. Dist, Sept. of the General Contract.

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Can Change Orders Jeopardize Bond Protection?

Construction Dive

The bonds incorporate the terms of the construction contract or subcontract by reference. The prime contractor subsequently terminated the subcontract for default and moved against the sub’s performance bond. The sub’s surety said, in effect, “This is not the subcontract we agreed to bond.”

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Will It Soon Be Much Easier for Construction Firms to Perform Federal Work?

Construction Dive

Will the newly updated ConsensusDocs 752 Federal Subcontract Agreement make it significantly easier for general contractors and subcontractors to perform federal work? David Mendes, a spokesperson for the American Subcontractors Association (ASA), believes so. ” Read more. . ” Read more.

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Have You Seen All the Contract Documents?

Construction Dive

The drafting party seeks to impose its terms through reference. Featured …Assent to Unsigned “Standard” Subcontract Cannot Be InferredPrice Evaluation Tainted by Misinformation on Estimate What is disturbing is the lack of transparency. Sometimes, the other party never actually sees the document.