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So, what exactly happens when you kiss today goodbye, figuratively of course, in a construction project with a liquidated damages provision?  Although the past few years of critical labor shortages in subcontractor trades have tested the ability to complete projects within the contract time and contract price, the COVID-19 pandemic presents a challenge on a completely different order of magnitude. As construction projects shut down due to illness, manpower shortage, or restrictions on travel, there are a few helpful things to know about liquidated damages clauses. 1.     Liquidated Damages

Much has been made about the $2 trillion relief bill that Congress passed and President Trump signed into law at the end of March 2020.  Though the 800+ page bill makes for some fine bedtime reading, there are three quick takeaways from CARES (Coronavirus Aid, Relief, and Economic Stimulus) Act that may have an immediate and direct benefit to the construction industry. Takeaway 1: SBA Loans The CARES Act includes a $367 billion loan and grant program for small businesses. Any business, nonprofit organization, veterans’ organization, or tribal business under 500 employees, or under the Smal

 

It was the best of times, it was the worst of times, and it was definitely the most inconsistent of times.  As Texas continues to follow the Federal model of a decentralized approach to stay-at-home and business cessation orders, three counties (well, actually, two counties and one city) reflect the inconsistent approaches taken by different jurisdictions.  While the decentralized model may work well for businesses that operate solely within the boundaries of a given city or county, it can be problematic for businesses that operate across different city and county lines. To contrast the diff

How do your contracts address delays and financial implications associated with the novel coronavirus and COVID-19?  Is additional time or additional compensation allowed?  Under what circumstances? These are just a few of the questions many professionals in the construction industry have begun asking this week as more counties and cities in Texas impose stay at-home and business cessation orders.  The COVID-19 page of our website contains all the current stay-at-home orders issued by counties and large cities in Texas. To find some answers, we will examine a few common contract provisions

What happens when a natural event or government order makes your work impossible to complete on time or budget or at all?  What happens if a government inspector is prohibited or physically incapable from inspecting the work at critical milestones?  This question has found new-found relevance with the novel coronavirus and COVID-19 pandemic (collectively, “COVID-19”).   In the wake of COVID-19, Texas counties and cities have issued a patchwork of stay-at-home orders. The COVID-19 page of our website contains all the current stay-at-home orders. The majority of these orders deem constru