| Cost-Plus Contracts |
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| A cost-plus construction contract generally obligates the owner to pay for the costs associated with the construction project and a fee for the contractor's services on the project. More... |
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| Liquidated Damages for Delay |
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| When a construction project is delayed through the fault of a contractor, that contractor may be responsible for liquidated damages. Many construction contracts provide for this eventuality by specifying that the contractor must pay a predetermined amount for each day of delay attributed to it. A court will generally enforce such a liquidated damages provision so long as the payment amount is commensurate with the owner's entitlement to damages as opposed to an amount that, instead, operates to penalize the contractor. More... |
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| Interpretation of Construction Contracts - Trade Usage |
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| "Trade usage" indicates a regular observance of course of conduct between those in a given industry that is usually expected to be followed by those in the industry or trade. Parties to a contract are generally considered to be justified in their assumption that performance under the contract will be in keeping with the usage of trade. More... |
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| Interpretation of Construction Contracts - Course of Dealing |
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| The "course of dealing" between parties to a construction contract encompasses their past actions in conducting business on other matters and is regarded as the basis for a common understanding between the parties. Essentially, their conduct in carrying on past business affairs with one another may be used to interpret a contractual provision in their current business endeavor. When the parties have neglected to include a term in their current contract, courts may look to their course of dealing to supply the missing term. More... |
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| Act of God as a Contractor's Defense |
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| An owner may allege breach of contract against the builder with respect to the performance, or lack thereof, of the construction contract. As a defense, the builder may claim the impossibility of performance based on an act of God. Additionally, the act of God defense can be utilized on a builder's behalf to show that a delay in performance was excusable. More... |
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