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Showing posts from August, 2017

Contractors and Subcontractors Beware

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Contractors and Subcontractors beware of shopping center, retail and out parcel projects. Big box and specialty retailer store closures may impact collectability for ongoing projects.

Fortune 500: The Death of Retail is Greatly Exaggerated | Fortune.com




TOP TEN CONSTRUCTION CLAUSES - PART IX - PAYMENT TERMS

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TOP TEN CONSTRUCTION CLAUSES – PART IX – PAYMENT TERMS
This article is the ninth in a ten-part series analyzing the top ten critical construction clauses.  In this installment, we analyze the “payment terms” provision, which encompasses a discussion on retainage and final payment.  This article will focus primarily on the updated American Institute of Architects’ Agreement between the Owner and Contractor (AIA Document A101-2017) as well as Florida case law. 
I.OVERVIEW
The payment terms provision is perhaps the most palpable of all construction clauses as each party to a construction contract has unique concerns when it comes to payment.  An owner is concerned about overpaying its general contractor before its work is completed and will require some kind of assurance that the work will be completed.  Meanwhile, a general or subcontractor is concerned about receiving prompt payment so not to create financial hardship.  In negotiating the terms of payment, the goal is to reach a balanced…

TOP TEN CONSTRUCTION CLAUSES - PART VIII - INCORPORATION BY REFERENCE

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TOP TEN CONSTRUCTION CLAUSES PART VIII—INCORPORATION BY REFERENCE
This is the eighth installment in a ten-part series analyzing critical construction clauses.This installment analyzes the “Incorporation by Reference” provision. The first seven articles can be found on our blog at http://sotolawgroup.blogspot.com/.
The incorporation by reference clause, sometimes called a flow-down or pour-over clause is the basis by which parties to a contract include upstream contract requirements without specifically attaching them. Typically, this occurs between the contactor and subcontractors. Below is the pertinent section of the incorporation clause taken from AIA form A401.
AIA "Standard Form of Contract Between Contractor and Subcontractor" (A401)
Article 1
The Subcontract Documents 
1.The Subcontract Documents consist of (1) this Agreement; (2) the Prime Contract, consisting of the Agreement between the Owner and Contractor and the other Contract Documents enumerated therein, including …

TOP TEN CONSTRUCTION CLAUSES - PART VII - NO DAMAGES FOR DELAY

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TOP TEN CONSTRUCTION CLAUSES PART VII—NO DAMAGES FOR DELAY
This is the seventh installment in a ten-part series analyzing critical construction clauses.  This installment analyzes the “No Damage for Delay” provision. My first six articles can be found on our blog at http://sotolawgroup.blogspot.com/.
A.Overview and Background
Most construction contractors and subcontractors assume that if they encounter a delay on the project that is not attributable to them, for example, changes in the sequencing of the work ordered by the project owner, discovery of hazardous materials or unknown conditions at the project, or adverse governmental actions, that they would entitled for reimbursement for damages caused by those delays. Such damages could include unabsorbed home office overhead, remobilization/acceleration costs, or increased materials costs.
However, an increasingly common contract provision, known as the “No Damages for Delay Provision” bars recovery of these damages and poses a substantia…

Firm Lawyer Jose A. Rodriguez, Esq. Achieves Board Recognition as a Construction Law Expert

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