The subcontractor’s sworn statement is one of most effective tools that contractors can use to ensure that lower-tier subcontractors and suppliers receive adequate payment throughout the job, yet many contractors either fail to appreciate how the sworn statement works or simply fail to utilize it, thereby increasing their risk of mechanics liens, bond claims, and double payments.
Illinois Governor Bruce Rauner vetoed Senate Bill 3052, commonly known as the retainage reform bill, on August 24, 2018.
The most common method of contracting for private commercial construction is reimbursement of the contractor’s construction costs plus a fee, with a guaranteed maximum price. Cost-plus contracting offers the allure of “open-book” contracting and provides the opportunity to return all or part of the savings when the costs come in below the guaranteed maximum price.
Construction projects that have a mixture of union and non-union trades are becoming more prevalent. A contractor undertaking a mixed-trade project must understand that harmonizing these two groups may present challenging issues.
While both relatively simple concepts, allowances and contingencies are often confused with one another. Conflating the two can lead to pitfalls. An easy way to remind oneself of the difference is: allowances are for known unknowns, and contingencies are for unknown unknowns.
Building Information Modeling (BIM) is changing the way construction projects are delivered.
It is common knowledge among construction litigators that in order for a contractor to recover attorneys’ fees from a subcontractor, the subcontract must specifically state that attorneys’ fees are recoverable. However, in litigation, the arguments impeding a contractor’s recovery of fees are quite nuanced.
A fundamental tenet of arbitration is that arbitration awards are subject to very limited review and are rarely vacated due to an error in contract interpretation. The Illinois Uniform Arbitration Act sets forth just five limited grounds under which a court can vacate an arbitration award, including fraud; evident partiality; where the arbitrators exceeded their powers; where the arbitrators refused to permit material evidence; or where no arbitration agreement existed.