New Mexico Holds One-Sided Dispute Resolution Provisions Are Unenforceable
November 05, 2024 —
Bill Wilson - Construction Law ZoneDispute resolution provisions that grant one party the unilateral right to choose either litigation or arbitration to resolve disputes are common in the construction industry. The main difference between the two forums is that courts are more likely to strictly enforce contract terms as written as well as the applicable law, while arbitrators make decisions on more equitable considerations, untethered to the contract terms and—to some degree—the law. The party with the sole discretion to select the dispute resolution procedure can select the process most beneficial to its interests based on the nature of the dispute, regardless of who brings the claims. In Atlas Electrical Construction, Inc. v. Flintco, LLC, 550 P.3d 881 (N.M. Ct. App. 2024), the Court of Appeals of New Mexico recently held that an arbitration provision in a subcontract, under which the contractor retained the exclusive right to choose whether disputes arising under the subcontract were litigated in court or arbitrated was unreasonably one-sided, substantively unconscionable, and unenforceable.
The Atlas Electrical case involved two sophisticated entities with equal bargaining strength to negotiate the terms of a subcontract. The parties agreed to a subcontract provision which provided in the relevant part:
In the event [contractor] and [subcontractor] cannot resolve the dispute through direct discussions or mediation … then the dispute shall, at the sole discretion of [contractor], be decided either by submission to (a) arbitration … or (b) litigation …
Read the court decisionRead the full story...Reprinted courtesy of
Bill Wilson, Robinson & Cole LLPMr. Wilson may be contacted at
wwilson@rc.com
Architecture, Robotics, and the Importance of Human Interaction – An Interview with Prof. Kathrin Dörfler
September 21, 2020 —
Aarni Heiskanen - AEC BusinessWe sat down with Professor Kathrin Dörfler of the Technical University of Munich (TUM) in advance of WDBE 2020. We discussed the importance of innovation and how her research focuses on the need for practical and productive solutions when it comes to on-site support.
Digital and technical innovation plays an essential role in optimizing the modern built environment. Now leading the Augmented Fabrication Lab (AFAB) in TUM, Professor Kathrin Dörfler quickly saw the need for practical solutions early in her career.
The Importance of ‘Need’
“I’m originally an architect,” she says. “I studied digital art and architecture and my tendency to go toward digital fabrication came from this proximity to computational design and the need to use robots for fabrication. There was no other way to build the things you created in your virtual space without using machinery.”
Read the court decisionRead the full story...Reprinted courtesy of
Aarni Heiskanen, AEC BusinessMr. Heiskanen may be contacted at
aec-business@aepartners.fi
Anatomy of a Construction Dispute- An Alternative
February 05, 2015 —
Christopher G. Hill – Construction Law MusingsOver the past three weeks, I’ve discussed three “stages” of a construction dispute from the claim, to how to increase the pressure for payment, to the litigation. While these three steps are all too often necessary tools in your construction collection arsenal, they are expensive and time consuming. No well run construction business can or should budget for litigation. The better practice would be to engage a construction attorney early in the process and avoid the dispute altogether if possible. Unfortunately, even the best of planning can lead to the need to hire a construction lawyer for the less pleasant task of assisting you in getting paid.
This post is about an alternative to the scorched earth of stage 3 of the process that can and should be at least considered either before or after the complaint or demand for arbitration has been filed. I am of course speaking about voluntary mediation. Why did I emphasize “voluntary?” Because to me mandatory mediation (as required in many construction contracts) is a bit like forced volunteerism, it is something that the parties will go through to “check a box” but will not have their hearts in it. Remember, by the time the mandatory mediation clause kicks in, the parties are likely at an impasse in their construction dispute and are ready to fight. Being forced to mediate, especially from the party seeking payment, can (and in my experience often does) make the parties just go through the motions at best and be hostile to the process at worst. Neither of these attitudes are conducive to resolving a dispute.
Read the court decisionRead the full story...Reprinted courtesy of
Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com
Governor Murphy Approves Legislation Implementing Public-Private Partnerships in New Jersey
August 28, 2018 —
Steven M. Charney & Charles F. Kenny - Peckar & Abramson, P.C.On Tuesday, August 14, 2018, New Jersey Governor Phil Murphy signed Senate Bill S-865, creating the state’s new Public-Private Partnership (PPP) law, making New Jersey the latest state to embrace this burgeoning delivery system for the construction of public infrastructure projects. The new law goes into effect 180 days from today.
Peckar & Abramson (P&A) has teamed with both The Associated Construction Contractors of New Jersey (ACCNJ) and the Association for the Improvement of American Infrastructure (AIAI) who have been at the forefront in promoting this landmark legislation. P&A anticipates that the new law will create multiple opportunities for much needed public building and infrastructure projects in the state. In our recent Client Alert (June 29, 2018), we highlighted the numerous opportunities that will be available as a result of the PPP legislation, notably for the delivery of projects that may not have otherwise come to fruition.
Reprinted courtesy of
Steven M. Charney, Peckar & Abramson, P.C. and
Charles F. Kenny, Peckar & Abramson, P.C.
Mr. Charney may be contacted at scharney@pecklaw.com
Mr. Kenny may be contacted at ckenny@pecklaw.com
Read the court decisionRead the full story...Reprinted courtesy of
Stop Losing Proposal Competitions
December 10, 2024 —
Christopher G. Hill - Construction Law MusingsFor this week’s Guest Post Friday here at Musings, we welcome back Matt Handal. Matt (@matthandal) provides proposal writing strategies that actually work at www.howtowritetheproposal.com. He is the author of Proposal Development Secrets, contributing editor of SMPS Marketer, and co-author of the Marketing Handbook for the Design & Construction Professional. His latest experiment is on business letters.
It’s frustrating. You’re a great designer or contractor. Clients love you. The problem is you spend hours producing great proposals, but keep losing. Not only that, most of the time you don’t even get short listed.
To make matters worse, the clients keep choosing firms you know you’re better than. So they get the contract and you’re left scrambling for work.
Even though these firms frustrate you, imagine what it’s like to be them. They’re not the best, or most qualified firm, yet they walk away with the contract. They are not scrambling for work. They’ve got a healthy backlog. Imagine how it must feel to be them.
Read the court decisionRead the full story...Reprinted courtesy of
The Law Office of Christopher G. HillMr. Hill may be contacted at
chrisghill@constructionlawva.com
Massachusetts SJC Clarifies “Strict Compliance” Standard in Construction Contracts
January 02, 2019 —
Jacob Goodelman - Gordon & Rees Construction Law BlogIn Massachusetts, it is well established that a contractor cannot recover damages from a construction contract without first showing that the contractor completely and strictly performed on all of the contract’s terms. Recently, the Massachusetts Supreme Judicial Court narrowed the rule by concluding that complete and strict performance is only required for contract terms relating to the design and construction itself. The high Court explained that non-design / non-construction contract terms are governing by “ordinary contract principles, including the traditional Massachusetts materiality rule.”
Read the court decisionRead the full story...Reprinted courtesy of
Jacob Goodelman, Gordon Rees Scully MansukhaniMr. Goodelman may be contacted at
jgoodelman@grsm.com
Construction Litigation Roundup: “I Never Had a Chance”
May 29, 2023 —
Daniel Lund III - Lexology“I never had a chance.”
Such was the plea of a general contractor to a Maryland federal court after having been terminated for failure to perform.
“The Agreement provides no express right to cure,” found the court, weighing in on the contractor’s wrongful termination claim. Indeed, the contract was also very clear on termination, allowing for termination for cause on numerous bases, including a common catchall: if the contractor “persistently fails to perform the provisions of this Agreement.”
In advance of the actual date of termination, the owner wrote to the contractor, in accordance with the contract: “Notice is also given that seven days from the date of this correspondence, [owner] will exercise its [termination] rights under Section 13.2.2.2 of the Contract." The communication from the owner contained no discussion of allowing the contractor an opportunity to cure its alleged default.
Read the court decisionRead the full story...Reprinted courtesy of
Daniel Lund III, PhelpsMr. Lund may be contacted at
daniel.lund@phelps.com
Angels Among Us
June 21, 2024 —
Maggie Murphy - Construction ExecutiveIn the early morning hours of March 26, 2024, an outbound cargo ship in the Port of Baltimore unexpectedly lost power as it churned toward the Francis Scott Key Bridge. Authorities had just minutes to stop vehicular traffic before the massive vessel—985 feet long and 157 feet wide, nearly as tall as the Eiffel Tower if stood on end—crashed headlong into one of the bridge’s support piers. Quick-acting dispatchers were able to stop the flow of traffic in time, but overnight work crews filling potholes on the bridge didn’t have enough warning. Six workers lost their lives when the bridge collapsed.
On top of bringing immense grief, construction fatalities can be financially devastating to the surviving families. Enter Construction Angels, a nonprofit that provides financial assistance, grief counseling and scholarships to families of fallen construction workers. When founder Kristi Ronyak first heard news of the Key Bridge collapse, she immediately jumped into action. “We started getting calls just hours after the crash,” Ronyak says. “When I first heard the news, my heart sank, and I just started crying.
Reprinted courtesy of
Maggie Murphy, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Read the court decisionRead the full story...Reprinted courtesy of