Construction Law Practice Written By Kevin Hudson, Esq.

Integrated Project Delivery: Beneficial or Bad Idea?

Integrated Project Delivery: Beneficial or Bad Idea?
Authors: Kevin Hudson and Claire Williamson

In the construction industry, the goals of meeting schedule, decreasing costs, and increasing quality remain at the forefront of any owners mind when selecting his team. The traditional construction hierarchy sometimes makes it difficult to achieve all three, and owners often know they will have to sacrifice one of these goals to get their project finished. With this in mind, over the last few years some in construction identified the insulation of each field as the cause of this problem and have moved away from the conventional model of construction to a more collaborative model known as Integrated Project Delivery (IPD). Read More

Benefits And Risks of Subcontractor Default Insurance PDF

We are pleased to include an article written by Doug Rieder of Sterling Risk Advisors addressing the benefits and risks of subcontractor default insurance. The article details the client profile and details how the insurance works. The article also addresses recent developments in the market. Read More

Avoiding the Pitfalls of Subcontractor Claims – Guest Blogger Brad Parrott

Often a general contractor is caught in the middle of a subcontractor claim that is caused by the acts or omissions of the Owner/Designer. In these instances, the general contractor is protected by its conditional payment clause but needs to pursue the legitimate claim of its subcontractor. In a traditional setting, the subcontractor would sue the general contractor who would then file a third party action or a separate suit against the Owner. Read More

General Contractor Law – Rights and Responsibilities When a Subcontractor Files Bankruptcy

What are a General Contractor’s Rights and Responsibilities When a Subcontractor Files for Bankruptcy?

One critical misconception is that a subcontractor’s bankruptcy means that it is going out of business. A bankruptcy by a subcontractor may actually be the method by which the subcontractor continues to operate. For many businesses, the legal process of bankruptcy may simply lead to a restructuring of debt, under Chapter 11 of the U.S. Bankruptcy Code, and operations rather than liquidation, under Chapter 7. Read More

Construction Law – Dangers of Green Construction Building Codes

1.   The Classic Framework:  LEED Certification as Voluntary and Incentive Driven.

Historically, the most successful green initiatives were those driven by tax abatements and credits, expedited permitting, density incentives, utility credits and other Owner based incentives..  The majority if these initiatives came through the U.S. Green Building Council rating system for Leadership in Energy and Environmental Design (LEED).  Read More

Construction Law – Bad Faith Expansion

The attached case is a great victory for the general contractor, and it also shows the merits of pursuing even a small claim, if there are grounds to prove bad faith.  The highlights include the use of bad faith in the context of the ongoing contract, as opposed to the original contract formation, to award fees and the discussion of recovery outside of the contract, quantum merit.  Read More

Construction Law – Create Consensus

New Provisions of the AIA’s Consensus Documents Shift the Claims Burden onto the Contractor.

Owners commonly use the American Institute of Architects’ documents as the blueprint for construction contracts with contractors. Yet, the blueprint continues to change and those changes appear more and more slanted against contractors, as demonstrated by the newest AIA 2007 documents. Read More

Construction Law – Riskier Business

Big Dig Settlement Shows How Changes to Construction Contracts Have Unexpected Consequences.

Beginning with the 1987 set of construction documents, which were generally viewed as acceptable to most contractors, the American Institute of Architects (AIA) began a process of revising its construction documents every 10 years. Each revision has yielded more provisions that were unacceptable to contractors, and the 2007 set is no exception. Read More

Construction Law – Safety Insured

Safety, Insured Balancing Insurance and Indemnification Agreements Can Mitigate Risk in Utility Projects.

The wireless revolution is in full force, and to meet growing demand for cellular phones and data devices, wireless companies are scrambling for new cellular tower sites. Power companies are also scrambling to keep up. The surge of new construction related to power lines and cell towers does not, however, come without its fair share of risks. After all, the leading causes of death in construction are falls and electrocution. Read More

Construction Law – Immigration Labor Laws

Seeing Both Sides:

When It Comes to the Work Force Shortage, Is Immigration Reform a Viable Solution?

The construction industry has a long and true history of promoting minorities in the workplace. Despite troubled economic times, many areas of the construction industry continue to expand rapidly and some estimates suggest that construction constitutes 10 percent of the gross national product. Construction is one of the top employers in the country, and there is a critical need for skilled and qualified labors, regardless of skin color. Efforts to obtain workers through high school and college job fairs and through public advertising have not addressed the dramatic shortfall in workers. The question becomes whether there is a viable solution that can be had through immigration reform measures. The answer is “No” and we will outline some of the impediments. Read More