Understanding & Modifying Key Construction Contract Terms

As I mentioned, I  was one of three amigos who spoke on a Construction Contract webinar last week.  We had a good turn out and lots of very astute questions during the Q&A portion.  While you will miss all of my witty insightful helpful commentary, you can check out the slides for my portion, on understanding and modifying key terms, here:

Drafting Construction Contracts

My comrades’ presentations can be found by visiting Chris’s blog (for payment provision issues) and Craig’s blog (for damages and dispute resolution issues).  Happy viewing!

Dear Abby Advice for Engineers– too good not to share!

A recent column in the ENR shares a plethora of good advice for structural engineers–and any design professional–who wants to avoid a lengthy, ugly construction claim lawsuit.  Among the good gems in the article:
  • “E-mails can haunt. ‘Any e-mail you write can be used against you. Be careful—don’t write anything you don’t want to show up on the front page of your local newspaper.’” [I always say: imagine having to explain what you wrote to your elderly grandmother.].
  • “A tip: Mediate, mediate, mediate: This is the chance to control the outcome. In arbitration or in front of a jury, others control the outcome.” [This is very true. Early mediation can sometimes be productive, but other times some discovery is necessary first. Each case is different, so discuss when to mediate with your lawyer.]
  • “Be careful what you say. Example: If you call the contractor ‘an asshole,’ you are not covered by your insurance; if, as the observer of the process, you call the contractor incompetent, you are.”  [While I’m not nuanced in the acceptable derogatory language that may or may not be covered by your insurance policy, in general err on the side of caution. Think of your grandmother again when you decide what language you will use.]
  • “It’s not the size of the claims that hurts, it’s the time it takes to fight it—and the cost…Get your insurer’s assistance during the project to try to resolves issues as they arise.” [Very good advice.  Often, free claims prevention/loss prevention services are covered under your errors & omissions insurance policy.]  
haunted house
Have you been haunted by the ghosts of emails you’ve written?

————————

 Questions?  Thoughts? Comments?  Share below.

Photo (c) Moon Stars Paper blog. 

 

Key Construction Contract Provisions– a CLE Webinar featuring yours truly!

Happy Friday everyone!  Just wanted to drop you all a note to tell you of my upcoming webinar on construction contracts.  In connection with Strafford Publishing, and my blog buddies Chris Hill and Craig Martin, on Tuesday we’ll be presenting a webinar entitled:

Drafting Construction Contracts:  Key Provisions and Common Pitfalls

 3 knit dogs

(Photo definitely NOT a realistic representation of the speakers!)

Course Outline

  1. Strategies for drafting key payment provisions
    1. Terms & requirements
    2. Payment methods
    3. Progress payments & payment withholding
    4. Retainage & final payment
  2. Understanding & modifying key construction contract terms
    1. Scope of services
    2. Duties of the parties
    3. Changes to the project
    4. Termination issues
  3. Dealing with default
    1. Damages
    2. Dispute resolution

When:  this Tuesday, June 12th, 2012

Time:  1:00 pm- 2:30 pm, ET

Registration:  Click Here to register for 50% off  the list price, as my blogging guest.  I also have a few free tickets to the event, so if you are a client and want to attend for free, shoot me an email.

“See” you there!

Photo: (c) karkovski.

Got a Job Offer? Now What? Engineers and Architects: Think Before You Sign ! (guest post)

Today, we have a guest post by Hayley Spencer, a freelance writer and attorney, on behalf of Martindale.com. She enjoys writing articles on contract law, law careers, and employment agreements.

Got a Job Offer? Now What?  Engineers and Architects: Think Before You Sign!

Architects & Engineers are not immune from employment agreements.  Those who go to work for a larger companies, especially, may be required to sign a contract of employment.  This form may be standard and identical for each employee, or each employee may have a contract with the employer that applies solely to him or her. Alternatively, there may simply be an oral contract about the type of work the employee will perform, benefits to be provided, and bonuses which are applicable.  If there is no oral or written form of agreement, the behavior of the professional parties involved can be identified as an implied employment contract. Some relationships may be that of a traditional employer and employee, while others may be set up as some type of an independent contract. Regardless of the specific details, it is always wise to have a qualified attorney review all such agreements before you sign them.

shaking hands on employment agreement
Why Do Engineers and Architects Need Employment Agreements?
Barring terms and policies that are actually illegal, anything and everything can be integrated into these types of agreement. Nonetheless, for engineers and architects, the law provides several safeguards regarding what can and cannot be negotiated upon as terms of employment. Furthermore, due to the gradual decrease in unemployment rates, employers have had to propose contracts for transitory workers loaded with language to safeguard them as much as possible. The sheer volume of potential variation, therefore, makes written contracts wise.

What Should You Consider Before Signing an Employment Agreement?
There are several particularly important regulations and policies of which you should be aware before signing any type of employment agreement.

First, is there a probationary period? Professionals do not just utilize probationary periods to analyze their new recruit’s fit. Setting a probationary time frame enables them to dismiss for purposes that would otherwise be inconsistent or inadequate.

Second, are oral offerings included in the contract? As with any relationship, optimistic forecasts of the future are common at the beginning of a work relationship. Nonetheless, your attorney can guide you through a list of solutions for engineers, architects and other specialists if employers’ pre-employment expressions were created negligently or if promises did not materialize.

What Common Aspects of an Employment Agreement are Generally Acceptable?
A professional confidentiality agreement is a part of a contract wherein the engineer or architect promises never to share any data regarding the details of how the employer’s enterprise is carried out, or of the employer’s confidential procedures, plans, solutions, information or equipment.

Similarly, a non-competition clause generally states that for a specified amount of time following the date the engineer or architect stops working as a part of the company, that person will not become employed by a competing firm or a firm focusing on an identical form of business.

An ownership of inventions clause applies to specialists who create or invent something as part of their work. By agreeing to this type of clause, the worker agrees that anything he or she creates while employed, or during a specified period of time following the contract termination, is treated as the creation or invention of the company and not that of the engineer or architect.

A no extra compensation clause specifies that if the worker becomes some type of executive or manager for the firm, he or she will not be subjected to extra compensation for accomplishing these duties.

Conclusion

 Of course, this brief guide will be insufficient to help you navigate all the potential issues involved with these types of employment contracts. Their details can vary widely, so seek out a professional for assistance.

Thank you, Hayley, for your post.   North Carolina employees should be aware that unless there is a specific employment contract, you are generally an “at will” employee.  That means that you can be fired for any reason or no reason whatsoever, so long as it is not due to your being a member of a protected class (race, religion, sex, etc.).  Also, covenants not to compete must be deemed reasonable to be enforceable.

 Any questions for Hayley?  Please post, below.  And, if you haven’t already, please sign up to get email delivery of all posts directly to your mailbox, by going to the sign up form.  At the same time, you’ll get the download link to my free white paper on the 7 Critical Mistakes that Design Professionals Make during Contract Negotiation and Execution that Sabotage their Projects & Invite Litigation.

Photo: (c) Aidan Jones via Creative Commons license.

My Webinar (today!) on 7 Critical Mistakes Design Professionals Make (PDH credit)

Act fast, and you can hear little ‘ol ME from the comfort of your computer speakers today at lunchtime.  I’m presenting a brownbag

webinar starting at 12:00 Noon ET on

the 7 Critical Mistakes Designers Make that Could

PENC brownbagSabotage Their Projects.  This is an expanded talk based on my white paper.  The webinar is for 1 hour, and PDH

credit is available.

Free for members of the Professional Engineers of North Carolina; $30 for non-members.

Go here to register.