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Construction Law Authority / Posts tagged "contract"

Keeping ‘Green’ Contracts Clear

The green building industry is arguably more popular than ever. The number of certified green buildings grows every day across all sectors of the building industry. Unfortunately, the contracts for sustainable projects are sometimes behind the times. Standard construction contracts are often not tailored to address the numerous issues and nuances that may come up on sustainable projects. This potentially puts all contracting parties at greater risk of uncertainty if disputes arise on the job site. Preparation on the front end of a green building is usually the best way to alleviate problems later on, and it starts with the contract. This is true whether the project is one for new construction or for renovations or retro-fitting. First, the contract should be as clear and specific as possible about what the green goal is. Simply using terms like "green building," "sustainable building" or "high-performing building" are not enough, because it is...

Florida Public Bidders Must Understand the “Cone of Silence”

In Florida, public agencies typically have restrictions on bidder communications with public officials and employees. For example, an agency may have a prohibition on communicating with anyone other than a designated representative during the competitive solicitation process. These restrictions are often referred to as a “Cone of Silence”. Violations of the Cone of Silence can result in disqualification of the bidder. The purpose of a Cone of Silence is to prevent bidders or their representatives from lobbying decision makers while designated staff are afforded the opportunity to evaluate the bids or proposals in accordance with the terms of the solicitation. The restriction on communications may, for example, terminate when the agency’s board or commission meets to make a final decision. At that time the bidder may be able to address the board or commission directly before it makes a final award decision. While the restriction is in place, however, bidders must...

What Owners Need To Know About Florida Statute §558.0035

Effective July 1, 2013, Florida Statutes Chapter 558 was amended to provide a “safe harbor” to individual design professionals for claims of negligence. Specifically, Florida Statutes §558.0035 states that any design professional “who is employed by a business entity or is an agent of a business entity is not individually liable for damages resulting from negligence occurring within the course and scope of a professional services contract.” Florida Statute §558.0035 also expands the definition of “design professionals” to include geologists in addition to architects, interior designers, landscape architects, engineers and surveyors. These changes are limited to individual design professionals only, not business entities, and the statute covers only economic damages. The new law does not limit claims for personal injury or property damage. It is also worth noting that §558.0035 will not limit professional negligence claims by parties who have no contract with an individual design professional and/or his or her...

Being Indemnified for Your Own Wrongdoing

Despite the general rule that parties to a contract may agree to any terms they want, there are some terms that must satisfy certain requirements in order to be enforceable, like indemnification provisions. Even in short, simple, standard form documents, like work orders, the provisions must satisfy the requirements, or you might not be able to rely on them when you need them most....

Why Should the Condominium Association Require Bonds from the Renovation Contractor

               We often encounter Condominium Associations who have difficulty understanding why they should bond their exterior renovation contract.   Many Associations consider it money wasted on another layer of liability protection when they would rather spend the money on actual scope – sticks, bricks, and finishes. They do not expect the surety to pay the claims even if they are made against the Contractor’s Performance and Payment Bonds.  Association Boards often ask, “Isn’t the risk already covered by all the insurance required from the Contractor?” The short answer is, “No”, and here’s why.             A performance bond, unlike insurance, assures the Association that the Contractor, or its Surety, will complete the project even if the contractor goes bankrupt or cannot competently perform to complete the contract. In addition, sometimes a Surety can be required to pay Association claims for work not properly performed even after occupancy. See, Federal Ins. Co. v. The Southwest Florida Retirement Center, Inc.,...

Common Bidding Mistakes, Part 2

Avoiding common bidding mistakes may be the difference between having your bid rejected, and the award of a lucrative public contract. In our prior posting, we outlined five of what we have described as the "top ten" common bidding mistakes. The following are additional issues to watch out for when preparing a bid for a public agency in Florida....