Sweat the Small Stuff – Don’t Overlook These Three (3) Clauses When Negotiating Your Construction Contract
April 08, 2024 —
Bill Shaughnessy - ConsensusDocsReviewing and understanding the terms of your construction contract before signing on the dotted line (ideally with counsel involved) is an obvious best practice – whether you are owner, general contractor, design-professional or down-tier subcontractor or supplier. Typically, during this review process, parties pay closest attention to terms relating to price, scope, schedule, insurance, indemnification, and damages. And rightfully so, as these are just some of the most fundamental and important clauses of any construction contract.
But during this review and understanding process, parties often overlook and fail to fully review and understand several notably important contract provisions (other than the examples above) which can have just as significant an impact on the project and even unintended consequences once construction starts. This article discusses three (3) of these often-overlooked provisions which should also be carefully reviewed to ensure the project runs smoothly and to avoid unintended consequences or even disputes (and litigation) during construction:
- Incorporation by reference clause;
- Order of precedence or higher standard clause; and
- Choice of law clause.
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Bill Shaughnessy, Jones Walker LLP (ConsensusDocs)Mr. Shaughnessy may be contacted at
bshaughnessy@joneswalker.com
The New Industrial Revolution: Rebuilding America and the World
March 04, 2019 —
Drew Buechley - Construction ExecutiveConventional thinking says the Industrial Revolution ended more than a century ago. Yet one crucial industry has lagged behind revolutionary changes stemming from the transition from hand production methods to the use of machines and rise of factory systems. In the 1800s, these transitions caused an influx of people to urban centers, where the majority of those changes were centered. The outcome? Not enough capital or time to build adequate housing, pushing low-income newcomers into overcrowded, unsanitary slums, resulting in increased death rates and endemic levels of contagious diseases. While other industries mechanized and surged, construction remained stagnant in comparison to demand.
Fast forward to the 21st century where the U.S .benefits from a developed and industrialized world. Monumental gains in technology, combined with regulations designed to protect communities from polluted waters and disease, have drastically improved quality of life. Yet one similarity remains – the industry still struggles to build enough housing for a growing population. Urban centers have been neglected for decades while the rate of urbanization increases annually. Communities still have no access to clean drinking water and many suffer from crumbling infrastructure. Home ownership is out of reach for an entire generation, with metropolitan areas unable to keep up with demand for housing. At the very center of this lies the staid construction industry. Lagging behind the rest of the industrialized world in terms of technology advances, it has severely impacted the ability to maintain a livable nation and world.
Reprinted courtesy of
Drew Buechley, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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Newmeyer & Dillion Announces Three New Partners
March 16, 2017 —
Newmeyer & Dillion LLPNEWPORT BEACH, Calif. – FEBRUARY 7, 2017 – Prominent business and real estate law firm Newmeyer & Dillion LLP is pleased to announce that three of the firm’s attorneys – Ben Ammerman, Anne Kelley and Rondi Walsh – have been elected to partnership. Their promotions are effective immediately.
“The elevation of these three attorneys is a testament to their leadership, hard work, and unwavering commitment to superior service for our clients and the firm,” proclaimed Jeff Dennis, Newmeyer & Dillion’s Managing Partner. “This is an exciting time for the firm as we look forward to their continued success and contributions.”
Ammerman (based in Newport Beach, CA) focuses his practice in the areas of business, real estate, and tort litigation. In addition to his private practice, Ammerman presently serves as a Commander in the Navy Reserve Judge Advocate General’s Corps. He's also an active alumnus, currently named co-chair of the University of Southern California’s 20th Reunion Committee.
Kelley (based in Walnut Creek, CA) concentrates primarily in construction litigation and insurance coverage matters. She has over 12 years of experience working closely with builders, developers, contractors and subcontractors throughout Northern California developing legal strategies specific to the needs of each matter and the client’s business and goals. Kelley has litigated a wide variety of complex insurance coverage disputes.
Walsh (based in Newport Beach, CA) has incorporated into her practice the representation of policyholders in first and third-party insurance coverage, and business lawsuits involving contracts, property disputes, products liability and construction defect issues. She also has litigated numerous political and election law matters and has worked both professionally and as a volunteer on numerous political campaigns. Walsh is also an active member with the National Charity League.
About Newmeyer & Dillion
For more than 30 years, Newmeyer & Dillion has delivered creative and outstanding legal solutions and trial results for a wide array of clients. With over 70 attorneys practicing in all aspects of business, employment, real estate, construction and insurance law, Newmeyer & Dillion delivers legal services tailored to meet each client’s needs. Headquartered in Newport Beach, California, with offices in Walnut Creek, California and Las Vegas, Nevada, Newmeyer & Dillion attorneys are recognized by The Best Lawyers in America©, and Super Lawyers as top tier and some of the best lawyers in California, and have been given Martindale-Hubbell Peer Review's AV Preeminent® highest rating. For additional information, call 949-854-7000 or visit www.ndlf.com.
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2018 Legislative Changes Affecting the Construction Industry
June 06, 2018 —
Melinda S. Gentile - Peckar & AbramsonThe 2018 Florida Legislative Session recently concluded and a number of important construction-related House Bills (HB) and Senate Bills (SB) were presented during the Session. Florida Governor Rick Scott has 15 days to act on the legislation once each Bill has passed the House and Senate. Bills signed by the Governor go into effect on July 1, 2018, unless indicated otherwise. These Bills may impact General Contractors and Construction Managers in a number of ways, not the least of which is the period of time that a cause of action may be initiated for the design, planning or construction of an improvement.
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Melinda Gentile, Peckar & AbramsonMs. Gentile may be contacted at
mgentile@pecklaw.com
Just When You Thought General Contractors Were Necessary Parties. . .
December 31, 2014 —
Christopher G. Hill – Construction Law MusingsDid you think that a subcontractor had to name a general contractor in a mechanic’s lien suit? I did. Did you think that nothing about this changed in the case where a Virginia mechanic’s lien was “bonded off” pursuant to Va. Code Section 43-71? I did.
Well, a recent Virginia Supreme Court case, Synchronized Construction Services Inc. v. Prav Lodging LLC, seems to at least create some doubt as to whether the a general contractor is a “necessary” party to a lawsuit by a subcontractor in the case where a bond is posted for release of a mechanic’s lien.
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Christopher G. Hill, Law Office of Christopher G. Hill, PCMr. Hill may be contacted at
chrisghill@constructionlawva.com
Design Firm Settles over Construction Defect Claim
July 31, 2013 —
CDJ STAFFA Pennsylvania township has announced that it has reached a settlement with the architectural firm that designed its administration building. Cee Jay Frederick Associates will be paying than $1.05 million to settle claims of defects in the design of the building.
West Whiteland’s administration building was completed in July 2007. The first leaks were noticed in November and December 2008. In response, the township stopped payments to the contractor, Magnum, Inc. Magnum sued, claiming that their work was not to blame for the leaks. Magnum joined the township in suing the design firm.
Although Cee Jay Frederick Associates will be paying the township to settle the claim, West Whiteland will be paying $75,000 of that back to the firm to settle outstanding bills that had been withheld during litigation.
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Ten ACS Lawyers Recognized as Super Lawyers or Rising Stars
August 30, 2021 —
Cameron Sheldon - Ahlers Cressman & Sleight PLLCACS is very honored and pleased to announce ten members of our firm were awarded the distinction of top attorneys in Washington. Our blog articles usually cover Construction Legal News, but we feel this is a newsworthy accolade to be shared with friends and clients.
To become candidates to receiving the Super Lawyer nomination, lawyers are nominated by a peer or identified by research. After completing this first step in the process, Super Lawyer’s research department analyzes 12 indicators, such as experience, honors/awards, verdicts/settlements, and others. As for the third step, there is a peer evaluation by practice area. Finally, for step four, candidates are grouped into four firm-size categories. In other words, solo and small firm lawyers are compared only with other solo and small firm lawyers, and large firm lawyers are compared with other large firm lawyers. The process is very selective and only 5 percent of the total lawyers in Washington are nominated as Super Lawyers.
John P. Ahlers, one of the firm’s founding partners, was recognized as
the third Top Lawyer out of all Washington lawyers in the State.
Named partner Scott R. Sleight and partner Brett M. Hill were both recognized as one of the 100-Best Lawyers in the State.
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Cameron Sheldon, Ahlers Cressman & Sleight PLLCMs. Sheldon may be contacted at
cameron.sheldon@acslawyers.com
Reaffirming the Importance of Appeal Deadlines Under the Contract Disputes Act
January 26, 2017 —
Chadd Reynolds – Autry, Hanrahan, Hall & Cook, LLPA recent United States Court of Federal Claims (“COFC”) decision emphasizes the importance of deadlines for appealing a contracting officer’s (“CO”) decision under the Contract Disputes Act (“CDA”). On July 22, 2016, the COFC granted the consolidation of two naval contract dispute appeals totaling nearly $12.4 million in response to Nova Group/Tutor-Saliba’s (“NTS”) motion to resolve two Requests for Equitable Adjustment (“REA”) in the same forum. See Nova Group/Tutor-Saliba v. United States, No. 15-885C, 2016 WL 4009886, at *5 (Fed. Cl. July 22, 2016). NTS’s motion before the COFC sought to transfer an appeal of a REA before the COFC to the Armed Services Board of Contract Appeals (“ASBCA”), where another appeal of a REA arising under the same contract was presently on appeal. The COFC rejected NTS’s appeal to transfer the REA to the ASBCA because NTS did not appeal the REA within the 90-day limit under the CDA. Instead, the COFC allowed NTS to transfer the REA before the ASBCA to the COFC because timeliness was not an issue.
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Chadd Reynolds, Autry, Hanrahan, Hall & Cook, LLPMr. Reynolds may be contacted at
reynolds@ahclaw.com