The Bamberger Blog » construction contracts http://www.bamberger.com/blog Tue, 07 Feb 2012 13:30:16 +0000 en hourly 1 http://wordpress.org/?v=3.3.1 What are AIA Forms? http://www.bamberger.com/blog/2011/03/what-are-aia-forms/ http://www.bamberger.com/blog/2011/03/what-are-aia-forms/#comments Fri, 04 Mar 2011 13:30:53 +0000 kjewell http://www.bamberger.com/blog/?p=828 The American Institute of Architects (“AIA”) created a set of forms beginning in 1907 to provide uniformity in construction contracts.  The AIA Forms have been in significant use throughout the country since that time.  The forms are updated once every ten years by the AIA and other groups involved in the construction industry.  One of the stated purposes of the forms is to allocate risk fairly among all construction project players.

Various AIA Forms are available to use for the different contracts required for a construction project.  One benefit of using the forms is that because they have been in existence for such a long time, they are well-tested.  Contractors have a better understanding of the risks they are undertaking, and courts have interpreted the contract over the years providing a good explanation as to the meaning of the various contract terms.

The forms have drawn criticism in recent years.  Some contractors believe that owners and architects have too much control under the AIA Forms, and that risk is unfairly allocated to the contractors and subcontractors.  In order to address these concerns, several contracting groups have joined together and created ConsensusDocs which were first published in 2007.  While the AIA Forms and ConsensusDocs are more similar than dissimilar, there are important differences between the two, which will be addressed in future articles.

In many settings, contractors do not have to use any form contract, but instead, can use a contract tailored to meet that contractor’s needs and concerns.  These contracts should be annually reviewed to ensure they keep pace with changes in the law.  Generally, the party responsible for drafting a contract will draft the agreement to the benefit of the drafting party.  Contractors can also change, add or delete terms to form contracts to make them more fair.

If you have questions about any of these topics, please contact a member of the Bamberger Construction Team.

]]> http://www.bamberger.com/blog/2011/03/what-are-aia-forms/feed/ 0 Limitations of Liability – Effective Risk Management http://www.bamberger.com/blog/2010/07/limitations-of-liability-effective-risk-management-2/ http://www.bamberger.com/blog/2010/07/limitations-of-liability-effective-risk-management-2/#comments Thu, 29 Jul 2010 13:47:16 +0000 kjewell http://www.bamberger.com/blog/?p=544 During these difficult economic times, general contractors, subcontractors, architects and engineers are spending extra time and effort in developing effective risk management strategies for their construction projects.  An important contract risk management strategy available for these entities is the inclusion of a well drafted limitation of liability provision in all of their construction related contracts.

While conducting an analysis of your company’s risks related to a particular construction project, I believe it is always important to consider whether your company’s potential liability exposure on a particular project is similar to and bears some relationship to the potential reward your company will receive from properly performing the project.  One of the ways to try to assure yourself that your company’s liability exposure is not out of proportion with its potential reward is to draft and include a limitation of liability in your company’s construction contracts.

My recommendation is that your limitation of liability provision be drafted in such a fashion that your company’s total liability for any and all claims related to the project shall in no event exceed the contract price for that project.  These types of limitations of liability are routinely enforced in the State of Indiana, and go a long way in helping your company have an effective risk management strategy with respect to its contracts.

If you need assistance in drafting a limitation of liability provision to include in any of your construction related contracts, the construction lawyers at Bamberger are ready to assist you in this endeavor.

Author:  Herb Davis  (bio)
Phone:  812.452.3538
email:  hdavis@bamberger.com

]]> http://www.bamberger.com/blog/2010/07/limitations-of-liability-effective-risk-management-2/feed/ 0 Seek the Advice of an Experienced Construction Lawyer Before Executing a Standard Form Construction Agreement http://www.bamberger.com/blog/2010/06/seek-the-advice-of-an-experienced-construction-lawyer-before-executing-a-standard-form-construction-agreement-2/ http://www.bamberger.com/blog/2010/06/seek-the-advice-of-an-experienced-construction-lawyer-before-executing-a-standard-form-construction-agreement-2/#comments Thu, 10 Jun 2010 15:33:48 +0000 kjewell http://www.bamberger.com/blog/?p=511 Much of the construction work performed in Indiana, Illinois and Kentucky utilizes standard form construction agreements from the American Institute of Architects (“AIA”) or the Associated General Contractors of America (“AGC”), just to name a few, to govern the rights and responsibilities of the parties involved in the construction project. While these standard form construction agreements cover many of the risks involved in a particular construction project, these forms are not tailored to address the specific issues that may arise in your project, and have not been drafted to be more favorable to your company’s interests.  

The construction lawyers at the Bamberger Law Firm have the expertise to assist your company in modifying standard form construction agreements to more adequately protect your company’s legal interests. We have the knowledge necessary to modify the indemnity provisions, the warranty clauses and the limitations of liability, among others, to provide significantly better contractual protection for your company.

Although your company may spend more money at the beginning of the project to have an experienced construction lawyer review and revise the standard form construction agreements that your company will be executing, your company’s liability and business risks will be more adequately protected, and you will be signing a contract than better protects your company’s legal interests.

Please contact one of our construction lawyers for assistance on your next construction project. We look forward to demonstrating to you the benefits of having a Bamberger construction lawyer review and revise your standard form construction agreements.

Author:  Herb Davis  (bio)
Phone:  812.452.3538
email:  hdavis@bamberger.com

]]> http://www.bamberger.com/blog/2010/06/seek-the-advice-of-an-experienced-construction-lawyer-before-executing-a-standard-form-construction-agreement-2/feed/ 0 Construction Seminar – Contract Risk Management http://www.bamberger.com/blog/2010/04/construction-seminar-contract-risk-management/ http://www.bamberger.com/blog/2010/04/construction-seminar-contract-risk-management/#comments Tue, 20 Apr 2010 16:02:54 +0000 kjewell http://www.bamberger.com/blog/?p=446 Bamberger’s J. Herbert Davis will be the guest presenter at a luncheon seminar at Harding, Shymanski & Company on Thursday, May 13th from 12 noon to 1:30 pm.

The topic of the seminar is “Contract Risk Management” and it is intended to help you learn ways to better manage risks involved in your construction projects through effective contracting strategies.

The seminar will be held in Worthington Room in the lower level of Harding’s office, located at 21 SE Third Street in Evansville Indiana.  The seminar is free of charge and lunch will be provided.  CPE credits for CPAs will be awarded, however  no contractor CPE credits will be awarded.

To register for this event, call Christy at 812-491-1314 or email cragsdale@hsccpa.com by Tuesday, May 11th.  Please include your name, company, phone and email address. 

Author: Kim Jewell (bio)
Phone: 812.452.3588
email: kjewell@bamberger.com

]]> http://www.bamberger.com/blog/2010/04/construction-seminar-contract-risk-management/feed/ 0 Limitations of Liability – Effective Risk Management http://www.bamberger.com/blog/2009/11/limitations-of-liability-effective-risk-management/ http://www.bamberger.com/blog/2009/11/limitations-of-liability-effective-risk-management/#comments Fri, 13 Nov 2009 18:29:45 +0000 kjewell http://www.bamberger.com/blog/?p=262 During these difficult economic times, general contractors, subcontractors, architects and engineers are spending extra time and effort in developing effective risk management strategies for their construction projects.  An important contract risk management strategy available for these entities is the inclusion of a well drafted limitation of liability provision in all of their construction related contracts.

While conducting an analysis of your company’s risks related to a particular construction project, I believe it is always important to consider whether your company’s potential liability exposure on a particular project is similar to and bears some relationship to the potential reward your company will receive from properly performing the project.  One of the ways to try to assure yourself that your company’s liability exposure is not out of proportion with its potential reward is to draft and include a limitation of liability in your company’s construction contracts.

My recommendation is that your limitation of liability provision be drafted in such a fashion that your company’s total liability for any and all claims related to the project shall in no event exceed the contract price for that project.  These types of limitations of liability are routinely enforced in the State of Indiana, and go a long way in helping your company have an effective risk management strategy with respect to its contracts.

If you need assistance in drafting a limitation of liability provision to include in any of your construction related contracts, the construction lawyers at Bamberger are ready to assist you in this endeavor.

Author:  Herb Davis  (bio)
Phone:  812.452.3538
email:  hdavis@bamberger.com

]]> http://www.bamberger.com/blog/2009/11/limitations-of-liability-effective-risk-management/feed/ 0 Construction Law Forum – Risk Management During Difficult Economic Times http://www.bamberger.com/blog/2009/10/construction-law-forum-risk-management-during-difficult-economic-times/ http://www.bamberger.com/blog/2009/10/construction-law-forum-risk-management-during-difficult-economic-times/#comments Fri, 23 Oct 2009 16:16:10 +0000 kjewell http://www.bamberger.com/blog/?p=248 Join the attorneys at Bamberger for a complimentary forum on the best practices in construction law, where we’ll address various risk management topics and how they relate to the construction, engineering and architectural industries.  This informative seminar is scheduled for Tuesday, November 10th from 11:45 a.m. to 1:00 p.m.

We’ll also open the forum for group participation, so you can share and get answers to any issues you have experienced in the past or that you are currently struggling with.  It’s sure to be an informative session.  We hope to have you participate!

The forum will be held at Bamberger’s Evansville location on the 10th floor in the Hulman Building.  Lunch will be provided.  If you’d like to attend, please RSVP by Tuesday, November 3rd to Truda Hartmann thartmann@bamberger.com or by calling 812.452.3578.

Author: Kim Jewell (bio)
Phone: 812.452.3588
email: kjewell@bamberger.com

]]> http://www.bamberger.com/blog/2009/10/construction-law-forum-risk-management-during-difficult-economic-times/feed/ 2 Seek the Advice of an Experienced Construction Lawyer Before Executing a Standard Form Construction Agreement http://www.bamberger.com/blog/2009/08/seek-the-advice-of-an-experienced-construction-lawyer-before-executing-a-standard-form-construction-agreement/ http://www.bamberger.com/blog/2009/08/seek-the-advice-of-an-experienced-construction-lawyer-before-executing-a-standard-form-construction-agreement/#comments Mon, 17 Aug 2009 13:46:49 +0000 kjewell http://www.bamberger.com/blog/?p=165 Much of the construction work performed in Indiana, Illinois and Kentucky utilizes standard form construction agreements from the American Institute of Architects (“AIA”) or the Associated General Contractors of America (“AGC”), just to name a few, to govern the rights and responsibilities of the parties involved in the construction project. While these standard form construction agreements cover many of the risks involved in a particular construction project, these forms are not tailored to address the specific issues that may arise in your project, and have not been drafted to be more favorable to your company’s interests. 

The construction lawyers at the Bamberger Law Firm have the expertise to assist your company in modifying standard form construction agreements to more adequately protect your company’s legal interests. We have the knowledge necessary to modify the indemnity provisions, the warranty clauses and the limitations of liability, among others, to provide significantly better contractual protection for your company.

Although your company may spend more money at the beginning of the project to have an experienced construction lawyer review and revise the standard form construction agreements that your company will be executing, your company’s liability and business risks will be more adequately protected, and you will be signing a contract than better protects your company’s legal interests.

Please contact one of our construction lawyers for assistance on your next construction project. We look forward to demonstrating to you the benefits of having a Bamberger construction lawyer review and revise your standard form construction agreements.

Author:  Herb Davis  (bio)
Phone:  812.452.3538
email:  hdavis@bamberger.com

]]> http://www.bamberger.com/blog/2009/08/seek-the-advice-of-an-experienced-construction-lawyer-before-executing-a-standard-form-construction-agreement/feed/ 2