The COVID-19 pandemic has lasted two years, and while offices, projects, and the rest of life begin to return to pre-pandemic normal, the construction material supply chain and costs have not. In fact, it appears as though the impact on projects of material costs and delivery difficulties will be an issue going forward for the
construction contracts
Project Owners and General Contractors Take Note: Notice-to-Cure Provisions for Termination of Construction Contracts Cannot Be Disregarded Except in “Very Limited and Rare” Circumstances
By Bradley P. Pollina on
Posted in Construction, Construction Contracts
Construction contracts generally outline various scenarios in which a party can terminate the contract. In one common scenario, a contractor is permitted to terminate its subcontractor “for cause” if the subcontractor provides deficient work or fails to meet the project schedule. Contracts often describe this type of deficiency as a “failure or neglect to carry…
Parties to Construction Contracts Should Exercise Caution When Allowing an Arbitrator to Change Hats Between Mediator and Arbitrator
By Adam J. Sklar & Christopher P. Massaro on
Posted in Construction, Construction Contracts
Summer associate, Luke Alba, contributed to this article.
Dispute resolution provisions providing for mediation as a prerequisite to arbitration are standard in AIA construction contracts. Parties may nonetheless mutually agree to eliminate or waive those provisions and proceed directly to arbitration. Often, however, settlement discussions will ensue during the arbitration as costs begin to mount…
Written Change Order Requirements in Construction Contracts May be Waived
By Bradley P. Pollina on
Posted in Construction, Construction Contracts
A frequent topic of dispute in litigation involving construction projects is whether a subcontractor is entitled to payment for work it performs outside its contractual scope of work—often referred to as “extra work” or “change order work”—without obtaining a signed written change order to perform the work. The same issue often arises in the context…
Contractors, Know Your Contracts!
Last week, New Jersey’s Appellate Division re-affirmed the principle that a court must strictly apply the terms of a construction contract when determining a dispute between contracting parties. Where the contract terms speak directly to the issue in dispute, a court may not employ equitable considerations to determine the dispute even if the court believes…