Is short too short? This article tries to answer that question for construction contracts by delving into the major differences between short-form agreements and regular standard ConsensusDocs contracts.
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A growing number of state and local governments have adopted wage theft laws that aim to ensure employees receive full compensation by creating severe penalties. These laws often target the construction industry and impose significant penalties for employers who 鈥渕isclassify鈥 workers or fail to comply with expanded recordkeeping and notice requirements. Wage theft laws can make general contractors liable for their subcontractors鈥 or temporary labor brokers鈥 violations, even if these violations were not reasonably discoverable by the general contractor. Consequences for violating wage theft law can be severe, including fines and even criminal penalties in extreme cases. Some states have upstream liability provisions that can make the project owner liable for wage theft violations. Also, some wage theft laws negate the enforceability of specific contract provisions, while others require certain provisions to be included in contracts.
Termination for cause is costly and adversarial and has been covered in this article. But can a terminating party use equipment and tools left behind on the worksite (i.e., a crane)? The answer depends on what is in your contract.
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Termination for cause on a construction project is the equivalent of 鈥済oing nuclear.鈥 Construction is riddled with claims and litigation, and termination for cause litigation may be the costliest.[i] Construction professionals need to be familiar with the termination clauses in their contracts. This article examines the importance of writing an effective termination for cause provision and how the American Institute of Architects (AIA) and ConsensusDocs standard construction contracts differ on this issue.
Construction contracts provide a foundation for project success or, if done wrong, project failure. Updating your contracts is essential. You should evaluate and update your contracts based on the latest technology trends, legal developments, and the insurance market. ConsensusDocs updates its documents more frequently than the American Institute of Architects (AIA). The ConsensusDocs Contract Content Drafting Council (Council) solicits and reviews industry feedback to keep the ConsensusDocs ahead of the curve in identifying and establishing industry best practices. UPDATE: On September 20th, ConsensusDocs published comprehensive revisions to its most used prime and subcontract agreements that address design-bid-build.
Delegated design is when the lead design professional, an architect or engineer, delegates a portion of design responsibility to the builder. Standard construction documents have traditionally addressed this issue in a rudimentary fashion. The updated ConsensusDocs now provide more details and procedures for design development, approval, and design coordination with the overall project design to better address delegated design.