Multi-party relational contracts are the premier vehicle for implementing Integrated Project Delivery on commercial construction projects.  Because of laws governing public projects, the use of multi-party relational contracts has been limited to the private sector. These laws mandate which delivery models a public owner can choose.  Historically, the law mandated most public projects to use Read More 

Although markedly different in purpose and nature, commercial general liability (CGL) and builder’s risk insurance products are both critical for construction professionals concerned with managing risk. CGL insurance covers liabilities arising out of claims made against the insured as a result of the insured’s business activities.  A CGL insurer owes two duties to its insured Read More 

A recent federal court opinion emphasizes the importance for a contractor to comply with a contract provision requiring written and timely notice of claims.  The contract at issue was a subcontract between the General Contractor in a state highway project and the blasting subcontractor.  It required written notice of any claim for extra compensation to Read More 

In Kentucky, individuals and companies providing professional services, including architects and engineers in construction projects, have the advantage of a one-year statute of limitations. By this statute, even if the claim is couched in terms of a breach of contract rather than professional malpractice, the claim must be brought within one year or it will Read More 

When bidding on public projects, submitting a bid can waive a protest. Here’s why: Federal system: According to the Federal Acquisition Regulation, Bidders are required to raise problems with bid specifications prior to submitting bids on federal projects: “Protests based on alleged apparent improprieties in a solicitation shall be filed before bid opening or the Read More 

Integrated project delivery is a collaborative project delivery model that eliminates waste thereby reducing cost and speeding delivery.  A fundamental principal is the elimination of organizational silos that lead each party to elevate its own interest over that of the whole. As IPD delivers results, it is gaining ground.  51% of the 151 companies participating Read More 

The concept of indemnity is frequently encountered in construction contracts. It is defined in Black’s Law Dictionary as “to save harmless.” By indemnity, one party agrees to hold another person harmless for damage or loss sustained by a third party. There are three variants of indemnifications that appear in construction contracts: limited form, intermediate form, Read More 

Integrated Project Delivery (IPD) provides incentives to key members of the design and construction team for meeting the owner’s goals. On every IPD project, the primary goal is achieving cost savings so the total expended is less than the owner’s allowable costs. To achieve savings, the IPD Team establishes an expected cost at the project’s Read More 

Disputes are a very real part of the construction process. Being aware of the common causes of construction disputes can help avoid or decrease the impact of the dispute on the project. We discuss two common issues below. Because no project vision is perfect, construction projects often involve additional work or changes in the work. Read More 

Integrated Project Delivery (IPD) ovecomes shortcomings in the traditional construction delivery model, and paves the way for a dramatic elimination of waste.

Obtaining the highest quality for the lowest cost is a goal of every owner. One tool an owner can use for this is the use of financial incentives. The incentives are usually established in the form of a combined design-construction fund. Participants in traditional projects typically spend these contingencies. Under IPD, the team becomes entitled to up to one-half of contingency funds that are saved, or not otherwise spent.

Exceeding the construction budget is every project owner’s worst nightmare. But merely cutting costs too often results in a project of low quality. So, what is an owner with too many wants and too few dollars to do? Value Engineering (VE) is one common alternative. VE balances costs with function.

An owner can spend millions and millions of dollars to design and construct a state-of-the art, one-of-a-kind building. But to the surprise of many owners, paying for the building’s design does not automatically equate to owning that design. The Architectural Works Copyright Protection Act of 1990 gives “architectural works” copyright protection. This includes the design of any permanent, habitable structure, such as office buildings, hospitals, homes, restaurants, hotels, and museums.

It has been said that general contractors are mere “brokers of construction services.” No matter the construction delivery method, subcontractors will inevitably perform a signification portion of the construction project. Subcontract agreements between the subcontractor and prime contractor govern the subcontractor’s work.

Integrated Project Delivery (IPD) is founded on the premise that deep collaboration will result in optimal performance by all. The project players include the owner, architect, engineers, construction manager, and trade contractors.

You have an enforceable contract in place, but something changes with the work. Maybe the Owner has made a scope change. Or perhaps inclement weather created a material delay. Whatever the reason, the change may be given verbally with pressure to implement the change immediately.

Today’s commercial construction market remains very competitive as we slowly exit the downturn. The focus of parties is getting the project rolling. Oftentimes, work is started without a contract. In this circumstance, it is important to understand how the terms of the deal are defined if there is a falling out.

Anticipatory repudiation occurs when a party unequivocally expresses that it cannot – or will not – execute a promise before the time fixed for performance. For example, it may be a repudiation if a party refuses to perform unless the contract amount increases.