By Bruce Jervis
Virtually every construction contract contains a so-called “Continuing Work” clause. These clauses require the contractor to continue work in accordance with the contract schedule notwithstanding any dispute or disagreement that may arise between the contractor and the project owner. The contractor, of course, retains the right to pursue its dispute remedies under the contract.
Do contractors forfeit leverage by not being allowed to stop work? Certainly. But are Continuing Work clauses necessary in order to accomplish construction? Absolutely. It would be untenable if a contractor could bring a project to a standstill every time there was a disagreement or a demand for additional compensation, regardless of whether the matter was large or small. ... Read more.
Featured in this Week’s Construction Claims Advisor:
- Continuing Work Clause Did Not Violate Progress Payment Statute
- State Guaranteed Payment to Subs When It Waived Payment Bond
- Sub’s Bond Claim Suspended Pending Federal Claims Process
By Steve Rizer
Standard construction management agency contracts have been maligned for not doing an adequate job of defining which costs fall into a particular bucket, leading to confusion when it comes time for payment. If a new standard construction management agreement from the ConsensusDocs coalition lives up to its hype, there could be significantly less confusion of this sort in the near future.
Melissa Beutler, vice-chairperson of the ConsensusDocs Drafting Council, believes that the group’s new 830 Agreement Between Owner and Construction Manager (CM Provides General Conditions) represents “the first standard agency document that provides clarity, which will be a helpful contractual tool for owners and CMs alike.” The ConsensusDocs 830 Agreement and related exhibits will replace the current 801 Construction Management Agreement. ... Read more.