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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Real Property - Transactions

Date & Time
  • event Date

    Tuesday, November 5, 2024

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    90 minutes

Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.

$297.00
CLE
ALL

This CLE course will address advanced payment issues in construction projects, including change orders and extra work. The panel will provide practical guidance to construction practitioners for differentiating between actual versus perceived changes; undocumented oral change orders; changes due to defective plans and specifications; the effects of previously unknown site conditions; additional, unauthorized, or nonconforming work; changes because of external factors; and change order impact costs. The panel will also discuss the latest American Institute of Architects (AIA) standard contract documents--such as Article 7 of the AIA A201 General Conditions of the Contract for Construction--and best practices for amending these standard provisions to address payment issues.

Faculty

Matthew M. Quirin
Counsel
Meister Seelig & Fein Pllc

Mr. Quirin represents owners and developers during all phases of their major construction projects, including negotiating construction management agreements, development agreements, and agreements with design professionals. He also has extensive experience relating to construction license and access issues with adjacent properties to his clients’ project sites, including drafting and negotiating construction license and access agreements, as well as successfully prosecuting and defending numerous RPAPL §881 special proceedings. Mr. Quirin is also an experienced litigator who represents his clients to resolve claims that arise from their projects through prosecution or defense. His experience includes representing owners and developers in all phases of litigation, including trial, in state and federal courts throughout New York and New Jersey, as well as through alternative dispute resolution.

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Elizabeth M. Aboulafia
Partner
Cullen And Dykman LLP

Ms. Aboulafia practices in the areas of bankruptcy and restructuring as well as construction claims resolution, general construction law and complex commercial disputes. With broad expertise in the construction industry, Ms. Aboulafia frequently assists contractors to resolve delay, disruption, extra work and other contract claims and disputes through negotiation, alternative dispute resolution proceedings and/or litigation. She has experience in a broad range of construction-related matters, including experience representing general contractors and subcontractors with regard to claims preparation, dispute resolution, contract negotiations, contract compliance and administration, M/WBE certification, and providing outside general counsel services. Ms. Aboulafia utilizes her combined knowledge of restructuring and construction to guide contractors experiencing financial distress through out-of-court workouts with sureties and banks. Her deep understanding of the financial aspects of construction allows her to help contractors efficiently navigate the complex intercreditor relationships among sureties and banks.

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Description

No architect or engineer ever produced a perfect set of plans and specifications. Every construction project is different, and each is built by a combination of contractors. Work is often affected by the unforeseeable: inclement weather, subsurface conditions, new building codes, or unavailability of materials. Change orders exist because of the dynamic and complex nature of construction projects.

Nearly all construction contracts have a "changes in the work" clause that establishes procedures for revising a contractor's scope of work. A "changes in the work" clause is an essential part of any construction contract and allows the parties to agree to a process for changing the work and pricing those changes. The use of innovative and tailored approaches to these clauses and related issues can significantly maximize client return.

All major standard form agreements address changes in the work, usually as part of the general conditions. For instance, in the AIA-A201 2017, changes are addressed in Article 7. The standard form agreements all assume change orders are written documents. Custom contracts often explicitly state there can be no oral modification of the contract and only signed, written change orders will bind the parties.

Listen as our authoritative panel guides construction practitioners in differentiating between actual versus perceived changes and addressing undocumented change orders; changes due to defective plans and specifications; the effects of previously unknown site conditions; additional, unauthorized, or nonconforming work; changes because of external factors; and change order impact costs. The panel will also discuss the latest AIA standard contract documents and best practices for amending these standard provisions to address payment issues.

Outline

  1. Introduction
  2. Real vs. perceived changes
  3. Undocumented oral changes
  4. Changes due to defective plans and specifications
  5. Previously unknown site conditions
  6. Additional, unauthorized, or non-conforming work
  7. Change by outside forces: market shifts, zoning issues, etc.
  8. Change order impact costs
  9. AIA standard contract provisions
    1. Drafting strategies
    2. Best practices
  10. Practitioner takeaways

Benefits

The panel will review these and other key issues:

  • What best practices address change orders, extra work, and other payment issues?
  • What is missing in AIA Article 7?
  • What are best practices for modifying and amending these forms?
  • How can counsel help clients differentiate between real versus perceived changes?
  • What are strategies to avoid disputes over undocumented oral changes?
  • What are best practices for ensuring project-wide consistency?
  • What practical drafting strategies will reduce the likelihood of disputes and offer significant advantages if disputes arise?