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Ramsey Legal Blog

Writing a construction contract

Before any work begins, construction workers need a contract. These agreements help guide owners, contractors, manager, subcontractors and other construction professionals so the job gets done right and everyone’s needs are met.

Because this document is so key to a project’s success, it may be beneficial to work with a legal professional when it comes time to prepare the contract. Here are four reasons why.

Why is the Amazon deal met with so much resistance?

We’ve covered the agreement Amazon made with New York to bring a new headquarters to Long Island City, over which the New York City Council and many residents have expressed concern. The first of the council’s hearings looking into the deal occurred in December, but the second and third hearings have not been scheduled yet.

Large corporations open headquarters in New York all the time, so what makes Amazon so different? Why is the deal met with such resistance?

First city council hearing with Amazon expresses economic concerns

Amazon’s decision to open a new headquarters in New York has drawn praise and criticism, and this week the project’s critics were able to voice their concerns.

The New York City Council held its first of three planned hearings on December 12. Councilors on the Economic Development Committee asked Amazon executives and the New York City Economic Development Corporation about the deal to build in Queens. Protesters attended the hearing and often needed to be calmed or quieted by the council.

Amazon HQ could shake up New York, New Jersey construction

Amazon’s decision to develop two new campuses, ending a yearlong bidding war from cities across the continent, has the potential to have a huge impact on the commercial and residential futures of the metropolitan areas the company chose. One of those is our own New York City.

One of Amazon’s new “HQ2” locations is set to be built in Long Island City. The state successfully won a bid to bring Amazon to the Queens borough by offering performance-based incentives of over $1.5 billion, which includes an average $48,000 for each new job the company creates, as well as the option to apply for other tax incentives.

When is it time to litigate?

If you get into a dispute with a construction contract, you likely don’t want the matter to end up in court. It costs time and money, and it keeps you from getting more work done.

However, there are times when litigation may be the best option. Here are three instances when taking the dispute to the courtroom may be appropriate:

What to do if you’re not paid on time

After you agree on the scope of a project, sign a contract and complete the work, you have a fair expectation to be paid based on the terms of the agreement. Sadly, this is not always the case. In many cases, the people who hired you to complete a job don’t prioritize your payment.

No matter what excuses an owner, developer or manager uses, you have the right to compensation for your work. And regardless of whether you are based in New York or New Jersey, the law protects you.

NYC non-residential construction booms; residential growth slower

Non-residential construction appears to be booming in New York City as residential construction takes a back seat.

The non-residential construction industry is looking very strong in New York City. A new report suggested construction spending in the city is estimated to reach $61.5 billion by the end of the year.

Reasons to have your construction contract reviewed

A construction contract outlines all aspects of the job for all parties and governs the process to ensure everyone’s needs are met. As a result, every detail – even the smallest ones – needs to be reviewed before the contract is signed.

Construction contracts often benefit from third-party review by someone who has experience assisting professionals in the industry. Here are a few key reasons to have the contract reviewed:

Green Building Week is this week

This week, September 24-30, marks the annual Work Green Building Week, which aims to motivate and empower us all to deliver greener buildings. The event is promoted by the World Green Building Council (WGBC), which also produces an annual report with key statistics on green building space and policy changes around the world.

This year’s event is asking everyone to find opportunities to take action and commit to making a change in the homes they build, lease or live in, highlighting that 40 percent of global energy consumption comes from buildings.

What bonds are used in the construction industry?

Most contractors working on public projects, and even some private projects, are familiar with surety bonds. This contract is between the obligee, or the recipient of the obligation; the principal party, who will pay for the contracted obligation; and the surety. It is a promise by the surety to pay the obligee if the principal fails to meet their obligation.

But in the construction industry, there are other bonds that may be required in a contract. Below are three of the less common bonds and how they work.