What Is the Best Length for Design and Construction Contracts?

No one specific length is best for design and construction contracts. Project participants do, however, want to avoid overly short contracts with “gray” areas. The ones which do not address the major issues which may arise in the project. This is because design and construction contracts exist, largely, to resolve prevent and disputes. Design and Construction Contracts Are a Dispute Resolution Tool We must draft Read More

Project Owners Should Not Over-Rely On Title Insurer Review of Payment Applications

Real estate developers and property owners sometimes make a mistake by entirely outsourcing supervision of the monthly draw process to the title insurer hired by their lenders. But I counsel people against the over-rely on title insurer strategy. One of the big risks for Illinois project owners and developers is having to pay for the same work twice. I will not dwell on this point now because it is addressed in Read More

The AIA Document B152-2019 Interior Design Agreement: Important FF&E Changes

Compared to its widely-used B152-2007 predecessor, the new B152-2019 Interior Design Agreement contains many changes. The new B152 differs more, textually, from its predecessor than most updated AIA Contract Documents I have seen recently. Take Furniture, Furnishings, and Equipment, for example. The phrase and its “FF&E” abbreviation appeared just 21 times in the B152-2007. By contrast, the B152-2019 contains Read More

Arbitrator-Directed Arbitration: A Proposal To Improve Construction Arbitration

This article first appeared in the Construction Law Newsletter, Volume 35, Number 5 (May 2019), co-authors Mark C. Friedlander and Jeremy S. Baker Arbitration was once the darling of the construction industry, with parties intentionally sacrificing the safeguards of litigation, and its expensive and inefficient procedures, in favor of fair, quick, and cost-efficient dispute resolution. Many in the industry, Read More

This Is a Great Time for Design and Construction!

Written by Jeremy S. Baker - Chicago River facing West I was floored by Steve Burrows’ absolutely brilliant keynote at Digital Build Week 2019. I first heard it as a podcast, at the gym. I stopped my workout and furiously scrambled to take notes. Steve Burrows is a visionary engineer with a long career. He is someone you should know. His speech “This is the Greatest Time in History to be in Construction” Read More

Why Diligent Project Owners Should Never Lose Mechanics Lien Claims

Written by Jeremy S. Baker - You are a project owner or real estate developer. You want to avoid lien claims. But how? Yes, the Illinois Lien Act – first passed in 1825 – contains arcane and confounding rules. But here is the truth: real estate developers and project owners should never lose lien claims … IF they follow the Lien Act, as they make periodic payments on their design and construction Read More

Jeremy Baker to Present at AIA Chicago Zoom Webinar April 7th 12pm CST

Mechanics liens are a powerful tool to help architects secure payment on Illinois projects. In turbulent economic times, AIA contract type liens can be particularly useful to architects concerned about their clients’ willingness – or ability – to pay for design services. Liens can sometimes motivate project owners and lenders to pay architects and their subconsultants. Architects who meet certain short deadlines, and Read More

FCPA Primer for International Design Agencies

Written by Jeremy Baker in May 2015. Originally posted on https://www.schiffhardin.com/ - Introduction to FCPA Settlements Design professionals tempted by the lure of overseas work need to understand the Foreign Corrupt Practices Act (“FCPA”). FCPA compliance is an important loss prevention issue. While exchanging gifts and things of value is a way of life in many countries, U.S. anti-bribery laws Read More

The AIA’s Sustainable Projects Exhibit: E204-2017

The American Institute of Architects (AIA) simplified the process of targeting project-specific “Sustainable Objectives” by releasing its Sustainable Projects Exhibit, E204-2017, in its 2017 Contract Document rollout. The E204 exhibit is compatible with Owner-Architect Agreements (like B101-2017), Owner-Contractor Agreements (like A101-2017), and other contract forms. Many newer AIA forms require the Owner and Read More