Cost-Plus Construction Contracts: Change Orders, Audit Provisions, Negotiating Disputes, Termination
Course Details
- smart_display Format
On-Demand
- signal_cellular_alt Difficulty Level
- work Practice Area
Real Property - Transactions
- event Date
Monday, August 24, 2020
- schedule Time
1:00 p.m. ET./10:00 a.m. PT
- timer Program Length
90 minutes
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This 90-minute webinar is eligible in most states for 1.5 CLE credits.
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This CLE course will discuss cost-plus construction contracts, addressing when it is most advantageous to use, as well as the most severe drawbacks. The panel will provide examples to assist construction counsel on how to best document the changes that lead to future disputes, how best to audit a project, and how to both negotiate and terminate these agreements.
Mr. Frega advises clients in all aspects of commercial transactions, specifically focusing on the drafting and negotiation of master services agreements, complex design services agreements, material procurement agreements and construction services agreements. He has extensive experience in the drafting, negotiating and management of construction contracts, including design services, construction management, construction services and material procurement agreements. His experience spans across various project pricing and delivery methods, including lump sum, time and material, unit price, GMP, EPC and EPCM. In addition to his transactional practice, Mr. Frega has represented owners and contractors in litigation matters in both state and federal court. These cases have involved prosecution and defense of breach of contract, non-payment, delay and professional negligence claims.
Mr. Walsh specializes in front end construction, project development and dispute resolution. He represents owners, developers, contractors and design professionals in construction projects, including, energy and power plant facilities, commercial and industrial manufacturing plants, infrastructure support, warehouses, and storage facilities, hotel, condominium and multifamily residential housing developments, healthcare facilities, entertainment complexes, and shopping centers. Mr. Walsh routinely provides representation in negotiation and drafting of development, design, engineering, construction, and related agreements including advice on partnering and integrated project delivery contracts, trade labor and project labor matters, insurance, IP protection, land use and zoning, environmental and building code regulations, professional licensing issues, and accessibility laws.
Once presented with a new construction project, one of the first decisions to address is the price structuring. Cost-plus construction agreements provide more flexibility in circumstances with significant unknowns. Counsel and clients must prepare to examine the project to determine the advantages and disadvantages of such use.
Construction counsel should work with key partners to develop a cost-plus agreement that addresses the risks of disorganization and sets forth explicit requirements for change orders. Cost-plus construction contracts should also include detailed audit provisions to ensure payment requirements are met.
Most construction industry associations provide standard form agreements. However, counsel must know the proper terms to negotiate and understand the intricacies of termination so that their clients can achieve their goals.
Listen as our panel of construction practitioners addresses the ins and outs of cost-plus contracts and provides guidance on when to utilize these agreements. The panel will discuss critical clauses, means of avoiding disorganization, the avoid process, and how and when to attempt termination.
- Cost-plus basics
- Budgeting
- Scheduling
- Scope of services
- Logistics
- Change orders
- Termination
- Advantages and disadvantages
The panel will review these and other key issues:
- What are the advantages and disadvantages when utilizing a cost-plus contract as a price structure?
- What are best practices for documenting change orders and keeping a cost-plus project organized?
- When and how can a cost-plus contract be terminated?
- What factors should construction counsel consider when tailoring a professional association standard form to a particular project?
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