Construction projects are riddled with risk. Differing site conditions, changes, delays, bad weather, potential cash flow problems, and claims, to name a few. Good construction contracts should help to reduce the risks of uncertainty by planning and predicting how to deal with problems.
Almost any problem on a construction project can be traced to one of two things: changes or delays (even delays are really just changes). As in life, embrace and manage the change don’t run from it.
For Contractors:
- Understand and apply the changes clause in your contract;
- Provide written notice;
- Keep working on unchanged work to mitigate delays (read more);
- Confirm your entitlement under the contract terms;
- Track and timely present your estimated and actual costs to the Owner; and
- Timely present a complete and well-reasoned story about the change to the Owner.
For Owners:
- Understand and follow the changes clause in your contract (you probably have obligations even if you disagree there is a change);
- Clearly communicate in writing your complete or partial (dis)agreement with a change; and
- Timely and reasonably review and consider claims or change proposals (you have more control during the Project than afterwards).
Government Contract Claims: When Appeal is Rejection of Settlement
Without a reservation of rights, appealing a Contracting Officer’s Final Decision is a rejection of any offer of payment or settlement included therein. So, the contractor had only three options.
Linking Obligations
If you want to bind the subcontractor to the prime in every way the same as the prime is bound to the owner, then the incorporation clause of the subcontract should be: . . .
Termination of Government Contracts for Convenience (T4C)
Imagine you’re a Government Contractor under a firm, fixed-price contract and you’ve done nothing wrong. Nevertheless, the Government has decided to unilaterally end its contract with you. Yes, the Government can do this...
Government Contractors: Build a Snowman in August
As a Government Contractor, when have you agreed to perform a certain way, but later realized that another way is better for everybody? When the Government agrees, expressly or impliedly, to the alternative performance, it waives a credit for the unperformed work.
Construction Dispute Settlement: Dealing with Details
Reap the benefits of settling a construction dispute by doing these things.
E-mail Signature Not Enough to Certify a Claim
Construction project professionals routinely send e-mails with “signatures,” which typically include the sender’s typewritten name, title, contact information, and/or company logo. But, this sort of e-mail “signature” is not enough to certify a claim to the Government.
Government Contractors: Ask for a “Sum Certain” in Your Claim
If your Claim includes an item for damages with an amount “TBD,” you could lose the entire Claim.
Contractors: Be Aware When Contracting with Virginia Public Agencies
Without a valid contract, a Virginia public entity has no duty to to pay for any of your work.
Constructive Acceleration
Contractors know that time is money. So, the point is clear when expressly told to “Speed Up! Go Faster!”
But, what do you […]
