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Crazy S#!% in Construction Contracts

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It’s springtime in the construction industry, my friends.  Banks are lending again, optimism has returned and the private, non-residential sector is heating up.  Good news all.

But before you mobilize the yellow steel to your next jobsite, the deal’s gotta get done.  And so ’tis the season of contract negotiation — which, if you’re not careful, could lead to the season of your discontent.  That’s because some crazy stuff might be lurking in the document the party above you in the contractual chain wants you to sign.

Just ask Birmingham, Alabama construction attorney Burns Logan, the inspiration behind this post and its cheeky title:

There’s only one way to suss out the crazy in your construction contracts, and that’s by carefully reviewing them, as Sage Construction reminded us this week:

One of the three reasons cited in the linked blog post is “owners are pushing risk to GC’s.”

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Filed under Contract Review & Negotiation

Just Got Terminated for Convenience? Five Steps You Should Take Right Now.

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Did your contract just get axed? Read on. (Picture by Hans Braxmeier / pixabay.com)

Most private owners negotiate for a contract clause permitting them to terminate a construction agreement without regard to the quality of the contractor’s performance.  These so-called “termination for convenience” clauses come in handy when, for example, an owner’s financing runs dry and a project must be halted.  A termination for convenience clause allows an owner to cancel a project without materially breaching the contract and avoid paying the contractor its anticipated lost profit on unperformed work.

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Filed under Construction Risk Management, Termination Claims