Construction Law Newsletters

Design-Build Contracts

The design-build process combines the planning and construction phases of a project. Essentially, the functions of designing the project and actually completing construction according to such design are integrated into a single contract between the owner and the design-build contractor.

Standard International Construction Contracts

Standard contracts provide a beneficial service to parties to a construction contract because they aid in the efficient drafting of a working agreement and assist in identifying all the issues that may need to be addressed. Several entities have drafted contractual agreements for use by the international community, including the International Federation of Consulting Engineers.

Time for Contractor’s Performance

The time in which the contractor must complete his work on a project is normally stated in the construction contract. However, not all contracts express the time frame the same way. For instance, some contracts may require the contractor to complete his performance in a specified number of calendar days from the date of commencement while others require completion in a given number of working days.

Types of Construction Insurance

There are several types of insurance products used in the construction industry to cover potential losses. They include Commercial General Liability policies, builder’s risk policies, and errors and omissions policies.

Underpayment by the Owner

An owner “underpays” his contractor when he submits a progress payment for less than the full amount to which the contractor is entitled. Not only does an underpayment affect the contractor, but it also has very real consequences for the surety. If the contractor defaults, which may be likely if he does not receive his full payment, the surety is then obligated to step in.