As the resurgent economy demands more housing, private infrastructure, and other capital assets, a design firm faces the increased possibility that a client might encounter financial troubles. In addition to carefully vetting your client to determine their ability to successfully fund a project, you should understand your legal positions if a client experiences cash-flow problems.... Continue Reading →
Once again, economic factors have been pushing up the price of construction materials. In some cases, the increase means the costs of materials are soaring, and that means that construction contractors and subcontractors who submit a fixed-price bid are subject to the impact of escalating costs due to material shortages, snarled supply chains, continued tariffs... Continue Reading →
Guest blog post written by Joseph W. Cooch, Esq., of Lee/Shoemaker PLLC. Joseph W. Cooch is Counsel at Lee/Shoemaker PLLC, a law firm devoted to the representation of design professionals, in DC, Maryland, and Virginia. The content of this article was prepared to educate related to potential risks, but is not intended to be a... Continue Reading →
Recently, I’ve received a number of telephone calls from design firms concerned about consequential damage claims and contract language that refers to these damages. I thought it might be a good time to take a look at how this affects design professionals. Here are some of the questions I’ve received: 1. "What are consequential damages?"... Continue Reading →
Last week we posted about new contracts from the AIA. This week we're focusing on new contracts from EJCDC. Engineers should be aware that the Engineers Joint Contract Documents Committee (EJCDC) released four updated documents late in 2015. They are: E-560, Standard Form of Agreement Between Engineer and Land Surveyor E-564, Standard Form of Agreement... Continue Reading →
Although few disputes between clients and professionals are resolved through litigation, many clients demand that the design professional contractually waive any future right to litigate before a jury. Clients often want to set up a dispute resolution process that ends with a bench trial—allowing a judge to both decide the facts and apply the law... Continue Reading →
You sign a contract after you’ve negotiated an agreement that determines the rights and obligations of both parties. You think you know your client. But are you and your client the only two who can determine how that relationship is going to work? In recent years, there has been an increase in “other parties” having... Continue Reading →
As design-build keeps increasing market share in the project delivery process, more often than not architects and engineering firms are relegated to subcontractor status. Often, the contracts used reduce the amount of services provided by professionals, target professionals for all of the professional liability exposure (even though design-builders should carry professional liability insurance), and create... Continue Reading →
While all contracts have a legal standard of trust, a fiduciary relationship is a higher legal level of trust because one party is vulnerable financially to the actions of the other party. A fiduciary obligation is not considered an “arms-length” transaction where each party is looking out for their own interests. Instead, a fiduciary is... Continue Reading →
Your client wants to save money and opts not to pay for your involvement during the construction phase of the project. Does this increase your risk? Absolutely! It increases your risk as well as your client’s. Construction documents are never 100% complete and accurate. If you’re not involved during the construction phase, you lose the... Continue Reading →
