E-communication on contracts holds risks
THE YOUNGER YOUR workforce is, the better the odds that it was taught in school to communicate electronically. These workers tend to assume that e-mailing...
How long is a quote binding?
A three-month-old price can have a severe economic impact on contractors. CONTRACTORS, subcontractors and suppliers routinely give quotes and bids that...
The risk of skipping pre-bid inspections
BY SUSAN LINDEN McGREEVY CONSTRUCTION ATTORNEY WHILE READING recent court decisions, I was reminded of an avoidable source of problems for contractors:...
When does a contractor become a designer?
I THINK THAT you all understand what "design/build" is and the risk that goes along with being the sole party responsible for an entire project. One of...
Federal prosecutors use the nasty 'K' word
CONSTRUCTION ATTORNEY CONTRACTORS ARE USED to hearing four-letter words, but one particular double four-letter word is striking fear in their hearts....
Additional insured endorsements still an issue
IT HAS BEEN common in construction for a long time as long as this lawyer can remember anyway that contractors were required to show their customers that...
When do you want to have a contract?
IN THE EUPHORIA to get a "deal," vendors and contractors ( although contractors far more frequently) overlook the little details of exactly what terms...
Who should pay for material price increases?
MATERIAL PRICE increases are not new. Normally, sellers are expected to absorb and/or manage the risk of fluctuations in pricing when conducting their...
Sales and marketing materials as warranties
I HAVE WRITTEN more columns than I can count on the need for suppliers and contractors to carefully read and negotiate the agreements that they sign....
Caught in the middle again
This past week I talked to two different clients who were experiencing the same problem. They are both subcontractors who sell, but do not manufacture,...
Shared risk/reward can be countered
I READ WITH INTEREST H. Kent Craig's column in July's issue of CONTRACTOR ("Shared risk/ reward project management hooey," pg. 44) on the subject of cost...
Sole-source specs: risky for designers, owners
I AM SURE that every contractor and vendor has encountered the frustration of finding a specification that limits acceptable products too much. If your...
The 'Spitzerization' of the insurance industry
BY SUSAN LINDEN McGREEVY CONSTRUCTION ATTORNEY SINCE LAST FALL, when New York Attorney General (and now candidate for governor) Eliot Spitzer took on...
What Can You Do About Mistakes in Bids?
IT IS UNAVOIDABLE that, once in a while, someone is going to make a mistake in pulling a bid together. It could be a misplaced decimal, transposing numbers,...
Make Customers Confront Issues - in Writing
I HAVE JUST STARTED serving as an arbitrator in a multimillion-dollar case between an owner and a contractor, where it appears that both sides had very...
Make Testing Lab Decisions Before Job Starts
WE RECENTLY HAD a situation in a concrete case that brought up an issue that I have been thinking about for some time. On a multi-prime, construction...
Restrict Payments For Your Job To Your Job
IN MANY STATES, liens and bond claims can be filed by anyone who can prove that he contributed labor, material or services (sometimes pretty remote services)...
Who's Doing the A/E's Job?
MOST CONTRACTS for larger projects are written using standard form documents, such as AIA or EJCDC forms, or forms that are derived from them. Nearly...
What's Fair Regarding Additional Insureds?
THE COST OF INSURANCE has gone up and coverage seems to be shrinking. Is it any wonder that owners and general contractors want to make sure that their...
When you see a claim coming, prepare
JUST AS FLORIDIANS learned to put up plywood to protect their properties in September, contractors have to learn to take steps to protect their rights...
Must you wait when a sub can't perform?
EVERY ONCE IN a while you may find yourself in a subcontract with someone who shows signs of not being able to perform. Sometimes it's very clear-cut...
Stop paying other people's bills
NOW THAT'S a headline to catch your attention! Other than contracting the plague, or paying a lawyer, I can't think of anything a contractor hates more...
Liquidated damages must relate to actual ones
LIQUIDATED DAMAGES are an acknowledged part of life in the construction industry. While people in other lines of work might be surprised that anyone would...
What?! A Mechanic's Lien is Unconstitutional?!
WHAT COULD BE more sacred to a vendor or contractor than the right to file a mechanics lien? How could a court even think about limiting that right? Well,...
What Reverse Auction Bidding is All About
WITH THE UNIVERSAL presence of computers and the nearly universal reach of the Internet, you are probably aware of the widespread use of online auctioning...
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