Construction – GAILLE PLLC

Incentive-Based Compensation for Actual Cost and Time & Materials Construction/Services Contracts [Gaille Energy Blog Issue 94]

Posted by scottgaille
On September 16, 2020
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Gaille Energy Blog Issue 93 explained the following four types of construction/services compensation and the incentives created by each: Lump Sum Unit Price Time & Materials (T&M) Actual Cost This issue discusses how incentive-based compensation mechanisms can be added to Actual Cost and T&M commercial structures. In Lump Sum and Unit Price contracts, a contractor […]

Posted by scottgaille
On September 7, 2020
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This article explains the differences between the four types of compensation typically used in energy construction agreements: Lump Sums. The contractor is paid a flat price for successful completion of all of the work. For example, a contractor might be paid a lump sum of $10,000,000 for the entire project. No matter what the contractor actually spends, it […]

Posted by scottgaille
On July 11, 2020
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A Contractor’s pricing and schedule are based on a variety of factors, including the scope of work, site conditions, and seasonal weather risks. Sometimes nothing changes. More often than not, though, the Owner makes changes to the scope of work—or the Contractor encounters conditions that delay its Work. Should the Contractor be paid more? Should […]

Posted by scottgaille
On May 19, 2020
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Over the course of the last few months, lawyers have been deluged with articles about COVID-19 and force majeure, much of them containing quite similar content and analysis. My Research Assistant at The University of Chicago Law School, Tanner Harris, has been reading and tracking these articles over the last few months. In this issue […]

Posted by scottgaille
On May 13, 2020
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One of the principal COVID-19 issues facing the construction industry is a work shutdown due to an employee exhibiting COVID-19 symptoms, testing positive for COVID-19, or being exposed to someone who has tested positive for COVID-19. In such cases, the entire construction crew may be quarantined for several days (a “Quarantine Suspension“). During the Quarantine […]

Posted by scottgaille
On April 30, 2020
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“Time, no money,” are words commonly spoken by project owners when negotiating force majeure relief in construction and services contracts. It means that while a contractor can receive schedule extensions (more days to complete the work), no additional compensation will be paid due to force majeure. In response, a contractor may seek to shift the […]

Posted by scottgaille
On March 31, 2020
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Lawyers often gain valuable experience by accident. This was the case with me and force majeure. A couple of weeks after 9/11, I joined Occidental Petroleum’s business development office in Dubai. As the youngest person on the team, I received the most troubled assignments during an extraordinary time. I went to those places no one […]

Posted by scottgaille
On July 10, 2019
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An indemnity is one party’s agreement to hold another harmless for certain types of claims or losses. A typical definition of Indemnify would be as follows: “Indemnify” means release, reimburse, protect, indemnify, compensate, make whole, make good, hold harmless, and defend (including taking such steps and incurring such fees, costs, and expenses as may be […]

Posted by scottgaille
On June 28, 2019
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"site conditions"

Contractors are generally entitled to seek additional compensation (a “price adjustment”) for encountering unanticipated site conditions. The more challenging question is defining what, precisely, constitutes an unanticipated site condition. For example, in the clause below, unanticipated remains undefined: If contractor encounters unanticipated site conditions, then contractor is entitled to seek a price adjustment. The common meaning of unanticipated […]

Posted by scottgaille
On September 24, 2018
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Boring, Direct Pipe, HDD

Over the course of their construction, pipelines encounter many obstacles that require the use of subsurface tunnels. Such tunnels enable the pipeline to pass beneath roadways, railroads, rivers, and environmentally sensitive areas without disturbing them. There are three principal methods of constructing pipeline tunnels: (1) conventional boring, (2) horizontal directional drills, and (3) direct pipe […]

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Incentive-Based Compensation for Actual Cost and Time & Materials Construction/Services Contracts [Gaille Energy Blog Issue 94]

4 Types of Construction Compensation: Lump Sums, Unit Prices, Time & Materials, and Actual Costs [Gaille Energy Blog Issue 93]

Adjustment Clauses in Services and Construction Agreements [Gaille Energy Blog Issue 92]

Checklist and Compendium of COVID-19 Force Majeure Issues [Gaille Energy Blog Issue 88]

Avoiding Moral Hazard When Allocating COVID-19 Force Majeure Risk in Construction Contracts [Gaille Energy Blog Issue 87]

Standby Compensation for Force Majeure? [Gaille Energy Blog Issue 85]

Suspension Agreements as an Alternative to Force Majeure [Gaille Energy Blog Issue 82]

3 Types of Indemnities (Energy Construction) [Gaille Energy Blog Issue 79]

Unanticipated Site Conditions & Energy Construction Agreements [Gaille Energy Blog Issue 78]

Comparison of Pipeline Drilling Methods: Bores, HDDs & Direct Pipes [Gaille Energy Blog Issue 75]