With the post-pandemic recovery and federal stimulus funding working its way through the economy, most economists expect inflation to be a concern for the next few years. As we have noted before, there is material price escalation in the construction industry due to material shortages and snarled supply chains, which can result in larger claims... Continue Reading →
Earlier this year, the AIA published C203-2017, Standard Form of Consultant’s Services: Commissioning. The document has been significantly updated to reflect changes in the industry that have taken place since the prior version. The changes include: provisions describing the consultant’s role to help prepare the owner’s project requirements; detailed description of the consultant’s commissioning plan;... Continue Reading →
I recently received a telephone call from a policyholder asking this question because of a minor issue that arose when the term “notice of award” was capitalized in the general conditions, but was not capitalized in the instructions to bidders. His attorney advised that “it could be argued” (a not-unusual term for an attorney to... Continue Reading →
A “safe harbor” provision establishes a contingency percentage for change order costs during construction. If written properly, it can be an effective risk management tool. We recently reviewed a professional services agreement that included the following provision: “It is understood that the nature of the design process is such that plans, specifications and other documentation... Continue Reading →
