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Contractual Pitfalls Contractual Pitfalls -How to Avoid Them -How to Avoid Them Presented by: Presented by: Christopher G. Hill Christopher G. Hill DurretteBradshaw PLC DurretteBradshaw PLC chill@durrettebradshaw chill@durrettebradshaw .com .com durrettebradshaw.com durrettebradshaw.com Constructionlawva.com Constructionlawva.com

Construction Expo- Contracts Presentation

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Presentation slides from the Construction Expo in Richmond, VA discussing mechanic's liens, contract pitfalls, miller act bond claims, and other issues pertinent to construction professionals and contractors.

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Page 1: Construction Expo- Contracts Presentation

Contractual Pitfalls -Contractual Pitfalls -How to Avoid ThemHow to Avoid Them

Presented by:Presented by:Christopher G. HillChristopher G. HillDurretteBradshaw PLCDurretteBradshaw [email protected]@durrettebradshaw.comdurrettebradshaw.comdurrettebradshaw.comConstructionlawva.comConstructionlawva.com

Page 2: Construction Expo- Contracts Presentation

©2009, Christopher G. Hill, ©2009, Christopher G. Hill, All rights reservedAll rights reserved

Deal BreakersDeal Breakers

Pay when Paid

One Way Fees

Indemnity for Whole Project

No Damages for Delay

No Payment for Stored Materials

Artificial Claim Limits

Page 3: Construction Expo- Contracts Presentation

©2009, Christopher G. Hill, ©2009, Christopher G. Hill, All rights reservedAll rights reserved

Pay When PaidPay When Paid

Two Types of Pay when Paid:Two Types of Pay when Paid:

Enforceable: “Pay Enforceable: “Pay IF IF Paid”Paid” Payment by Owner/GC a prerequisite

Example: Sub is paid only if GC is paid.

Unenforceable: “Pay Unenforceable: “Pay WHEN WHEN Paid”Paid” Time Frame for payment after GC is paid

Example: Sub paid 15 days after GC paid

Page 4: Construction Expo- Contracts Presentation

©2009, Christopher G. Hill, ©2009, Christopher G. Hill, All rights reservedAll rights reserved

Negotiable ItemsNegotiable Items

Mandatory ArbitrationMandatory Arbitration

““Satisfaction”Satisfaction”

Location, Location, LocationLocation, Location, Location

Payment = WaiverPayment = Waiver

Shorter SOL than Statutes Shorter SOL than Statutes

Page 5: Construction Expo- Contracts Presentation

©2009, Christopher G. Hill, ©2009, Christopher G. Hill, All rights reservedAll rights reserved

Page 6: Construction Expo- Contracts Presentation

©2009, Christopher G. Hill, ©2009, Christopher G. Hill, All rights reservedAll rights reserved

Bonds, Payment BondsBonds, Payment Bonds

Government versus Private

Miller v. “Little Miller”

Timing

Claims

Page 7: Construction Expo- Contracts Presentation

©2009, Christopher G. Hill, ©2009, Christopher G. Hill, All rights reservedAll rights reserved

Page 8: Construction Expo- Contracts Presentation

©2009, Christopher G. Hill, ©2009, Christopher G. Hill, All rights reservedAll rights reserved

RequirementsRequirements

90 Day Rule

150 Day “Look back”

6 Month SOL

Notice on Residential Projects

Page 9: Construction Expo- Contracts Presentation

©2009, Christopher G. Hill, ©2009, Christopher G. Hill, All rights reservedAll rights reserved

Keep Your Rights AliveKeep Your Rights Alive

30, 60 and 9030, 60 and 90

MLA NoticesMLA Notices

Clear Old Invoices FirstClear Old Invoices First

Page 10: Construction Expo- Contracts Presentation

©2009, Christopher G. Hill, ©2009, Christopher G. Hill, All rights reservedAll rights reserved

Dispute ResolutionDispute ResolutionArbitration v. Mediation

Courts

Claims, Change Orders, and Delay

Page 11: Construction Expo- Contracts Presentation

©2009, Christopher G. Hill, ©2009, Christopher G. Hill, All rights reservedAll rights reserved

Check ReasonablenessCheck Reasonableness

Good For Owners and GC’sGood For Owners and GC’s

Check Circumstances are ReasonableCheck Circumstances are Reasonable

Page 12: Construction Expo- Contracts Presentation

©2009, Christopher G. Hill, ©2009, Christopher G. Hill, All rights reservedAll rights reserved

Page 13: Construction Expo- Contracts Presentation

©2009, Christopher G. Hill, ©2009, Christopher G. Hill, All rights reservedAll rights reserved

Green is GoodGreen is Good

USGBC/LEED

Green Globes

Government Mandates and Incentives

Page 14: Construction Expo- Contracts Presentation

©2009, Christopher G. Hill, ©2009, Christopher G. Hill, All rights reservedAll rights reserved

Why Else?Why Else?

Owner’s want it, easier to sell

Growth Potential

Page 15: Construction Expo- Contracts Presentation

©2009, Christopher G. Hill, ©2009, Christopher G. Hill, All rights reservedAll rights reserved

What This Means for YouWhat This Means for You

Strike While Iron is Hot

Catch Up on Green Building

Get Out There!

Page 16: Construction Expo- Contracts Presentation

Contractual Pitfalls -Contractual Pitfalls -How to Avoid ThemHow to Avoid Them

Presented by:Presented by:Christopher G. HillChristopher G. HillDurretteBradshaw PLCDurretteBradshaw [email protected]@durrettebradshaw.comdurrettebradshaw.comdurrettebradshaw.com