Kit Werremeyer

Understanding and Negotiating Construction Contracts

A Contractor's and Subcontractor's Guide to Protecting Company Assets

• Broschiertes Buch

Produktbeschreibung

Understanding and Negotiating Construction Contracts

The complexities of construction contracts are made easy with this thorough and readable guide

Construction contracts can be complex for both owners and contractors. For contractors, negotiating fair and balanced commercial terms in contracts is just as important as properly managing projects; a properly negotiated contract can mitigate unnecessary risk and unnecessary risk transfer. This, in turn, reduces exposure to financial liability for the contractor and for avoidance of contract claims and disputes.

Understanding and Negotiating Construction Contracts provides a comprehensive and readable introduction to the world of construction contracts. Providing, for example, coverage of the four most common types of contracts--lump sum/fixed-price, cost-plus, time-and-materials, and unit-pricing--it promises to reduce uncertainty and allow contractors to enter contractual negotiations with greater confidenceto be able to achieve a fair and balanced contract. This updated new edition reflects the up-to-date best practices to understand how to better negotiate the commercial terms and conditions in construction contracts.

Readers of the second edition of Understanding and Negotiating Construction Contracts will also find:
_ Updated information on indemnity, insurance, and negotiation
_ An all-new chapter with a contract analysis checklist
_ Real-world examples drawn from small residential, retail, large commercial, and international projects

Understanding and Negotiating Construction Contracts is essential for construction professionals and college students studying construction contracts and the liabilities arising out of them.

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Produktdetails

• Verlag: Wiley / Wiley & Sons
• Artikelnr. des Verlages: 1W394150200
• 2. Aufl.
• Seitenzahl: 384
• Erscheinungstermin: 27. Juni 2023
• Englisch
• Abmessung: 272mm x 213mm x 20mm
• Gewicht: 748g
• ISBN-13: 9781394150205
• ISBN-10: 1394150202
• Artikelnr.: 67178411

Autorenporträt

Kit Werremeyer is owner and president of Southernstar Consultants LLC, Valrico, Florida, US, which provides training in construction contract negotiations and other professional services for engineering and construction companies both in the US and internationally. He has more than four decades' experience in negotiating fair and balanced construction contracts, sales, major project development, and construction contract dispute resolution.

Inhaltsangabe

Acknowledgments xiii

About the Author xv

Preface xvii

Disclaimer xix

Introduction xxi

The Goals of This Book xxi

What Are the Benefits of This Book? xxi

Contractor & Owner Conventions xxii

Private Contracts or Government Contracts? xxii

Key Contracting Concepts xxii

Two Types of Commercial Terms & Conditions xxiii

The Most Important Commercial Terms & Conditions xxv

The Contracting Process xxv

Terms & Conditions xxv

The Concept of Risk Transfer xxvi

This Is a Book Developed Just for Contractors xxvii

Three Final Suggestions xxvii

Chapter 1: Contracts: Basic Training 1

What Is a Contract? 1

The Steps to a Contract 1

Coming to the Party? 2

The Starting Point 3

"Here's My Proposal" 4

"Consideration," or Something of Value 5

The "Happy Test" 5

"Can That Person Sign This Contract?" 6

Call in the Enforcer to Close the Breach! 6

A Contract Example 8

Strange Words & Long Paragraphs 10

Contracting Myths 11

Contract Negotiations 12

Chapter 2: Types & Forms of Contracts 15

Fixed Price & Fixed Schedule Contracts 16

Reimbursable Type Contracts 16

Combined Fixed Price & Reimbursable Contracts 18

Cost Plus Fee Contracts 20

Guaranteed Maximum Price Contracts 21

Target Price Contracts 21

Contracts with Performance Incentives 22

Form of Contracts 23

Some Final Contract Housekeeping-- Definitions 30

Conclusion 32

Chapter 3: Scope of Work 33

The Scope of Work Matrix 37

Scoping Drawings 39

Conclusion 40

Chapter 4: Terms of Payment & Cash Flow 41

Cash Flow 42

Interest Rates 44

Periodic Progress & Milestone Payments 45

Conclusion 59

Chapter 5: The Schedule 61

Float 62

Time Is of the Essence 64

Extra Time, but No Money 66

Conclusion 68

Chapter 6: Assurances of Performance 69

Guaranties & Bonds 70

What Does "Failure to Perform" Mean? 72

What Is a Bond? 72

Forms of Assurances of Performance 73

Surety Companies 78

Some Language Considerations on Guaranties & Bonds 82

Types of Performance Assurances 82

Conclusion 101

Chapter 7: Insurance 103

What Is Insurance? 104

Claims Made vs. Occurrence 105

Types of Insurance 106

Important Issues Associated with Insurance 112

Additional Insured Status 120

Additional Insurance Basics 121

A Typical Insurance Clause in a Construction Contract 134

Safety 140

Chapter 8: Indemnity 141

Insurance & Indemnity 142

Indemnity Definitions 142

Transferring the Owner's Risks to Contractors 143

Fairness Is Not a Consideration 143

Is an Indemnity Required in a Construction Contract? 144

Anti- Indemnity Legislation 144

Examples of Indemnification Clauses 150

Indemnification, Additional Insured Status, & Contractual Liability Insurance 157

Owners Love CLAIMS! 161

Negotiating Indemnity Clauses 162

Knock- for- Knock Indemnities 165

Conclusion 166

Chapter 9: Changes 169

Some Ground Rules 170

Protecting the Project Manager 170

Owners' Directives 171

Constructive Changes 171
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