Subcontract Formation Frequently Not Pretty

Construction Dive

By Bruce Jervis Subcontract formation is a problematic aspect of construction contracting. Prime contractors usually have “standard” subcontract forms, terms and conditions to which a subcontractor may object. It is frequently difficult to determine whether a subcontract has been created, and if so, on what terms? Featured … Subcontract Work Performed without Agreement to TermsAgency Not Liable for Protester’s Costs

Playing Games with Subcontracting Limitations

Construction Dive

By Bruce Jervis Many construction contracts, particularly for public works, include a limitation on subcontracting, effectively requiring the prime contractor to perform a certain percentage of the value of the contract with its own forces. This encourages hands-on management of the project by the prime. It also discourages the “brokering” of the work, bidding by entities that bring capital and bonding capacity, but little else. Read more

Subcontracting Raises Concerns After Fatal London Fire

ENR Construction

Did divided responsibility compromise the fire safety of Grenfell Tower

Paving a Career Path in Subcontracting

Construction Business Owner

I spend most days interacting with our industry’s next generation of leaders, and often have the opportunity to discuss with them their future plans. When the conversation turns to career paths, the typical response involves working as a project manager for a general contractor (GC).

How to Write Tight Subcontracts

Construction Business Owner

Starting projects with excellent subcontractors and detailed subcontracts will help you make more money, finish faster and reduce field issues. However, it’s easy to gloss over proposals and hire subcontractors you like or know without performing a scope review or cost-estimating analysis.

Insider Discusses EJCDC's New Document on Subcontracts

Construction Dive

Here is the summary for the October 2013 addition: One of the new documents that the Engineers Joint Contract Documents Committee (EJCDC) has added is “C-523,” which addresses subcontracts.

EJCDC 52

Equipment Rental and Subcontracting

DirtPail

In this situation, the options are equipment rental or subcontracting the work. It may not be worth purchasing machines that a business uses only occasionally. Either way, any work that requires use of that machine (possibly on more than one job) should be coordinated so it can be accomplished at the same time. Rental rates from contractors may be substantially lower than those of equipment dealers, depending on economic conditions.

ConsensusDocs releases updated subcontract for federal work

BD+C

The newly revised ConsensusDocs standard subcontract ( ConsensusDocs 752 for federal work) is now available. It is designed to address recent changes in federal contracting such as requirements for certifying small business entities and new reporting of executive compensation requirements.

Are Subcontract Payment Procedures Waiving the Pay-if-Paid Clause?

Construction Dive

By Bruce Jervis Two recent cases involving the waiver of subcontract “pay-if-paid” clauses illustrate the uncertainty of enforcing these provisions.

Equipment Rental and Subcontracting | DirtPail.com

DirtPail

Forum Selection Clauses in Construction Subcontracts Require Careful Drafting

Construction Lawyer Blog

Ryan, in turn, subcontracted part of the work to Welch, a Hawaii corporation. The subcontract between Ryan and Welsh: does not contain any provision by which the parties explicitly consent to, or agree upon, jurisdiction, venue, or any particular "forum" in the case of litigation. Nor does the subcontract contain anything like Paragraph 24.3.3 The only reference to a location for litigation appears in Paragraph 17 of the subcontract, which is actually entitled "ARBITRATION."

ConsensusDocs releases updated federal subcontract to help construction firms perform federal work

BD+C

The newly revised ConsensusDocs standard subcontract ( ConsensusDocs 752 for federal work) will make it easier for general contractors and subcontractors to perform federal work.

Chicago Casino Construction: How to Deal the House a Winning Hand

Commercial Construction

Commercial Construction Hospitality Construction Strategies and Operations Best Practices Chicago Commercial Construction Trends construction management Construction Subcontracting hotel construction Shopping Center Construction

5 Signs Your Shopping Center Construction Contractor is Costing You Business

Commercial Construction

Commercial Construction Office Construction Retail Construction Shopping Center Construction Commercial Construction Trends Commercial Remodeling construction news Construction Subcontracting Constructions best-practices general contracting

Secrets to a Successful Commercial Construction Subcontractor Relationship

Commercial Construction

Commercial Construction General Construction Strategies and Operations Best commercial construction projects Chicago Construction Bids Construction Subcontracting Constructions best-practices englewood construction general contractors Retail Construction StrategiesMartin and Lewis.

Buyer Beware: Five Commercial Construction Questions to Ask Before Purchasing a Distressed Note

Commercial Construction

If you’re looking to buy distressed commercial property , your eyes are probably as big as saucers. According to Real Capital Analytics there are more than 8,600 U.S. commercial properties in current distress.

Construction Blog Highlights

Construction Dive

This week's blog highlights from across the industry look at: Working in the Summer HeatUpdated SBA Rules on Subcontracting Requirements in Government ContractingBuilding a Better Construction BusinessRental Power for Construction SitesRead more

Inconsistent Dispute Resolution Causes Big Problems

Construction Dive

An owner-contractor agreement calls for binding arbitration, but the subcontracts do not, allowing suits in court. By Bruce Jervis The problem of inconsistent dispute resolution mechanisms is widely acknowledged in the construction industry. The designers have no agreements with the constructors and no incentive to coordinate dispute resolution mechanisms. Read more

Should Subcontractor Claims Be Decided Out-Of-State?

Construction Dive

By Bruce Jervis Prime contractors enjoy a lot of leverage when awarding subcontracts. One way they utilize this advantage is to specify the forum and governing law for any claim or dispute under the subcontract. Although the project and the subcontractor may be located in one state, the subcontract may require litigation in the prime contractor’s home state.

Aqua Cents Selected for Funding by Metropolitan Water District

Green Industry Professionals

Field tests show nearly 50% landscape water-use savings when using Aqua Cents; company now looks to expand reach of product nationwide through subcontracting and licensing agreements

Inconsistent Dispute Resolution Causes Big Problems

Construction Dive

An owner-contractor agreement calls for binding arbitration, but the subcontracts do not, allowing suits in court. By Bruce Jervis The problem of inconsistent dispute resolution mechanisms is widely acknowledged in the construction industry. The designers have no agreements with the constructors and no incentive to coordinate dispute resolution mechanisms. Read more

Exxon Selects Texas County for $10B Cracker Plant

Construction Equipment

was awarded the first two subcontracts for the project on Monday Exxon Mobil and Saudi Basic Industries Corp. have selected Portland, Texas, in San Patricio County, for its 1,300-acre ethylene cracker plant.

Those Controversial Subcontractor Indemnification Clauses

Construction Dive

Place one in every subcontract and if there is any injury on the project the subs will ultimately be liable. By Bruce Jervis General or prime contractors have always been enamored with indemnification clauses. The prime contractor will be exonerated even if it shared responsibility for a safety hazard. Read more

Subcontractor Bids

Mr Ethics

They also argued that as the lowest bidder they are due the subcontract. Is it unethical to deny them the subcontract? I would recommend that you contact counsel regarding the potential legal ramifications of having the subcontractor default during the project if you decide to award them the subcontract. Dear Mr. Ethics, We have a subcontractor that has provided us with a bid that left out a couple of key design areas.

Do Payment Bonds Cover More Than Contract Payments?

Construction Dive

An unpaid subcontractor must prove entitlement to payment under the subcontract as a prerequisite to recovery against a payment bond, or so it is usually stated. Featured … Sub Denied Under Subcontract but Reaches Payment BondCourt Addresses Hybrid Sales and Construction Contract By Bruce Jervis Payment bonds guarantee the payment obligations of a construction contract.

Should “Pay-if-Paid” Clauses Be Bluntly Worded?

Construction Dive

By Bruce Jervis “Pay-if-paid” clauses in subcontracts are controversial. Featured …Subcontract Clause Was Enforceable “Pay-If-Paid”Arbitration Clause Can Survive Unenforceable ContractMany consider it unfair for a prime contractor to shift the risk of project owner nonpayment to a subcontractor that has no business relationship with the owner. In some states, pay-if-paid clauses have been rendered unenforceable by statute or judicial ruling.

Exxon Selects San Patricio County, Tx for $10 Billion Cracker Plant

Construction Equipment

was awarded the first two subcontracts for the project on Monday A massive ethylene cracker plant to be owned by Exxon Mobil Corp. and Saudi Basic Industries Corp. has selected Portland, Texas in San Patricio County. for its 1,300 acre location.

$1 Billion Expansion at Orlando Airport Begins

Construction Equipment

There are 450 contracting and subcontracting firms currently working on the airport''s multiple projects. The $1 billion expansion is the first major construction overhaul since the main terminal opened in 1981.

$1 Billion Subcontractor Bid Opportunity

Construction Equipment

billion Wynn resort casino at the Mystic River in Everett, Massachusetts announced Wednesday it is soliciting a $1 billion-plus bid package in subcontracted services and supplies. General contractor Suffolk Construction, charged with building the $2.1

Should “Pay-If-Paid” Clauses Be Enforceable?

Construction Dive

By Bruce Jervis The enforceability of “pay-if-paid” clauses in subcontracts has been litigated extensively. The clauses are controversial because they purport to shift the risk of project owner nonpayment from the prime contractor, which has a contract with the owner, to subcontractors, which do not. Many feel this is unfair and reflects nothing more than the superior economic leverage of prime contractors over their subs. Read more

Federal Equal Employment Opportunity Poster Update

The Safety Blog

The federal labor law poster’s Equal Employment Opportunity (EEO) posting has been updated to include sexual orientation and gender identity on the list of discrimination protections for employers with a federal government contract or subcontract.

Does ‘Plain Language’ Terminology Enhance the Enforceability of Contract Clauses?

Construction Dive

A payment clause in a subcontract stated that payment by the project owner to the prime contractor was a “condition precedent” to the contractor’s obligation to pay the subcontractor.

Tough Guys Finish First

Construction Business Owner

Now, most general contracts and subcontracts are awarded based solely on the lowest price for the exact scope of work and terms specified for a project.

Have You Seen All the Contract Documents?

Construction Dive

Featured …Assent to Unsigned “Standard” Subcontract Cannot Be InferredPrice Evaluation Tainted by Misinformation on EstimateBy Bruce Jervis Many project owners, contractors and subcontractors use their own “standard” forms of agreement. Not surprisingly, these customized contracts tend to favor the drafting party. What is disturbing is the lack of transparency. Sometimes, the other party never actually sees the document.

Claim Procedures Are Essential with Extra Work

Construction Dive

An example is found in a subcontract on a recent private project in Ohio. By Bruce Jervis Project owners do not want to be surprised with claims for additional work at the conclusion of a project.

Make the switch from construction to service work

Constructor Magazine

Recently I''ve focused on subcontracting as opposed to prime contracting. BY ED O'CONNELL. Get away from general contractors and homebuilders — use each construction job to build your service clientele.

Should All Documents on Public Contracts Be Public Information?

Construction Dive

The contractor had subcontracted the architectural design to another company. The publisher of a local newspaper requested a copy of the subcontract. The prime contractor and the architect objected, citing confidential and proprietary information contained in the subcontract.