Construction Practice Newsletter - Winter 2009
Turnkey Nuclear Power Plant EPC Agreements: The Case for Price Certainty
By John Lamberski
There is increasing
optimism that construction of new nuclear power plants will be undertaken in this country beginning in the next few years. A fair number of utility companies are in the throes of negotiating multi-billion dollar engineering,
procurement and construction (“EPC”) agreements with nuclear reactor vendors and constructors...[
FULL ARTICLE]
The Legal Risks Of Green Construction
By Frank Riggs
Little more than 10 years ago, discussions of “sustainable building”
programs, or “green building” initiatives, were relatively rare among owners, contractors, and design professionals involved in commercial construction projects. And yet, the industry already is beginning to see that
new liability issues and litigation claims are accompanying the sustainable design and construction revolution...[
FULL ARTICLE]
Preserving Evidence In Anticipation Of Litigation: The Litigation Hold
By Ira Genberg
The general counsel of an owner receives a letter from a contractor, accusing the owner of delaying construction on a project and threatening legal action if the appropriate extensions are not granted. When discovery in the case
gets underway a year later, the general counsel finds himself unable to produce copies of email correspondence between the owner’s employees from almost two years prior. Why the big fuss over emails that were automatically
purged by the owner’s computer system eighteen months before? [
FULL ARTICLE]
Implementing a Workforce Downsizing
By Gene Webb and Laura Windsor
In this declining economic environment, employers increasingly look for ways to cut labor costs. Sometimes, downsizing a company’s labor force is the only way to effectively trim these expenses. However, with any downsizing
exercise (such as a layoff or reduction in force) comes the risk of costly litigation involving allegations ranging from age discrimination to breach of contract to deprivation of vested benefits...[FULL ARTICLE]
PRACTICE TIP - Doing Business in Multiple Jurisdictions
Never before have contractors, subcontractors, suppliers and design professionals been as concerned about getting paid for their work and services as they are on today’s construction projects. From the perspective of the contractors and design professionals, adequate upfront assurance and proof of adequate project financing, as well as contract clauses insuring access to reasonable proof of continued project financing during the course of the project, are critical. Increased focus on the steps necessary to insure preservation of lien and bond rights should be a priority for all contractor, subcontractor and supplier firms. Look carefully at the termination for convenience provisions of your contracts. Although such clauses may have been rarely invoked in the past, they are frequently the contract tool of choice when project financing disappears or is delayed. The termination for convenience clauses in many construction contracts are poorly drafted.
CALENDAR & ANNOUNCEMENTS
- Frank Riggs addressed the Georgia Chapter of the Construction Financial Managers Association on January 21, 2009. The topic of the presentation was the 2009 major overhaul by the Georgia Legislature of the Georgia lien law statute. The lien law revisions go into effect on March 31, 2009.
- Ira Genberg is chairing the two national construction conferences sponsored by the Associated Owners & Developers in 2009. The Atlanta conference takes place on September 14 and 15, and a second conference in Washington, DC, will be held on November 9 and 10.
- With the merger of Ross Dixon Bell and Troutman Sanders on January 1, 2009, Hallie Fahey, a resident partner in the Chicago office, joined the Construction Practice group. Hallie has extensive experience, not only in construction disputes, but also with insurance issues encountered by construction project participants.
- Frank Riggs addressed the Atlanta Bar Association Construction Law section this month on the 2009 changes to the Georgia lien law.