Announcing New Practice Group: Construction Contracts & Risk Management
Construction Contracts & Risk Management Group
In 2018, laws concerning construction contracts and projects changed in many states. For example, Pennsylvania modified its Contractor and Subcontractor Payment Act, changing notice requirements and limiting the ability of one party to require the waiving of the other party’s rights under the Act. A court in Ohio ruled that the faulty workmanship of a subcontractor is not covered by the general contractor’s CGL policy. Meanwhile, a federal court has read a bonding requirement into a construction contract even though the agreement did not require a bond to be posted. And, Maryland enacted the General Contractor Liability for Unpaid Wages Act, making general contractors jointly and severally liable for any subcontractor’s failure to comply with the State’s existing wage and hour law.
These changes in the law must be read in conjunction with other events taking place in the construction industry: BIM, P3 projects, and “design assist” contracts are becoming more prevalent; the popular 2007 AIA construction contracts are no longer available for use; the construction labor market is undergoing a never-before-seen shortage; and trade disputes have led to an escalation in the prices of steel and other materials.
To help our clients face these changes, Cohen Seglias has created a new area of concentration: the Construction Contracts & Risk Management Group. Headed by partners John Greenhall, Lisa Wampler, and Jonathan Cass, this new group will assist our clients in addressing contract negotiations, contract drafting, and day-to-day project questions, as well as insurance coverage and indemnification issues. With our extensive experience in representing developers, contractors, subcontractors, suppliers, governmental owners, design professionals, and sureties, we can analyze construction project issues from multiple viewpoints and arrive at a successful business outcome for your company.
If your contract forms have not been reviewed and updated in the past three months, you may be exposing your company to unnecessary risk. We can help protect your company and create a customized contract, and form a program that will serve your needs and allocate the risks of construction to those that should bear that risk. Please do not wait — you need to address the changed legal landscape now.
