Construction Management Agreements: Key Provisions, Common Areas of Dispute, and Minimizing Performance Risks

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Course Details
- smart_display Format
On-Demand
- signal_cellular_alt Difficulty Level
- work Practice Area
Real Property - Transactions
- event Date
Monday, June 17, 2019
- schedule Time
1:00 PM E.T.
- timer Program Length
90 minutes
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This 90-minute webinar is eligible in most states for 1.5 CLE credits.
-
Live Online
On Demand
This CLE course will provide construction counsel with guidance for crafting key provisions in construction management agreements. The panel will discuss clauses that should be carefully negotiated in these agreements and provide practical strategies to avoid common drafting pitfalls, minimize contract disputes, and protect client interests.
Faculty

Mr. Blake has been practicing construction law since 1994. He holds an undergraduate degree in architecture, and he has been a LEED ® Accredited Professional since 2006. As such, he offers his clients a rare background that is particularly valuable given the technically oriented nature of construction law, and the broad use of LEED ® standards across the country by federal and local agencies, as well as the private sector. Mr. Blake represents owners, developers, general contractors, design-builders, construction managers, subcontractors, and design professionals in all phases of the construction process. His experience during the pre-construction phase includes drafting and negotiating construction, construction management, engineer-procure-construct (EPC), design-build, design, and equipment purchase agreements.

Ms. Glahn is Vice Chair of the firm’s Construction Practice. Her practice focuses on claims counselling, dispute resolution, contracting, real estate, and project development. Ms. Glahn advises a range of public and private clients on strategic deal structuring, contract formation, complex litigation and claims resolution. She has successfully represented contractors, developers, lenders and owners through all project phases. Ms. Glahn has handled a broad range of construction disputes related to waste-to-energy and EPC projects, design-build ventures, commercial development, and hospital, university, and transportation projects. She has also drafted and negotiated hundreds of general contracts, subcontracts, consultant agreements, construction management agreements, development agreements, and other project related documents.

Mr. House is responsible for Beck’s program/project management, design, and construction services in the firm’s strategic markets of life science and healthcare. He is also responsible for key strategic projects across the company. Mr. House holds a Florida Class “A” General Contractor’s license as well as an engineering degree specializing in aerospace engineering. Mr. House began his commercial construction career in Tampa as a project manager with a local contractor specializing in educational facilities. He opened and operated a successful specialty contracting company from 1989 to 1996 when he sold the company to Shaw Industries and remained as president of the Tampa office. Joining Beck in 1999, Mark was tasked with developing the firm’s new Integrated Services Division in Florida. He was promoted to Chief Human Resource Officer in 2002 and moved to the corporate headquarters in Dallas. In 2006, Mark moved back to Florida lead the Tampa Regional Office, before being promoted in 2014 to lead Beck’s Strategic Projects group.
Description
A complex construction project will only run smoothly if all parties to the project--the owner, architect, contractor, subcontractors, materials suppliers and potentially many others--clearly understand the goals of the project and the responsibilities of each party.
The role of the owner's representative has grown in prominence and has become an essential factor in the success of many projects. Properly structuring the scope of services to be rendered by the owner's representative, careful vetting of qualifications, capabilities and experience, and crafting well-structured contracts that acknowledge the increasing performance risks of these consultants can make the difference between a successful or a challenging project.
Although construction industry associations provide standard construction forms, construction counsel should not rely on standard and boilerplate language when drafting construction management agreements. Instead, counsel should tailor the contract to the specific project, carefully negotiate key provisions and anticipate common areas of dispute.
Listen as our panel of construction practitioners experienced in negotiating construction management contracts discusses best practices for drafting and negotiating the agreements. The panel will discuss critical clauses to include in the contracts and provide strategies for avoiding common drafting pitfalls and resolving contract disputes.
Outline
- Overview
- Common issues
- Financial structuring: GMP, cost-plus, stipulated sum
- Preconstruction activities: budgeting, scheduling, constructability and logistics
- Construction phase activities: subcontract administration, payment, quality control
- Changes and delay
- Dispute resolution and termination
- Insurance and indemnification
- Key provisions
- Scope of work
- Construction manager's obligations
- Timeframes for completion of work
- Compensation
- Timing of payments
- Termination
- Definitions
- Owner's remedies on default
- Administration of the contract
- Protection of persons and property
- Insurance and bonds
- Uncovering and correction of work
- Miscellaneous provisions
Benefits
The panel will review these and other key issues:
- What contract terms are most frequently included in construction management agreements?
- What factors should construction counsel take into account when tailoring a professional association standard form to a particular project?
- What are the most commonly negotiated or disputed issues during contract negotiations and what are some effective strategies for resolving them?
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