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

Gaille Energy Blog Issue 93 explained the following four types of construction/services compensation and the incentives created by each: Lump SumUnit PriceTime & Materials (T&M)Actual Cost This issue discusses how incentive-based compensation mechanisms can be added to Actual Cost and... Continue Reading →

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

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... Continue Reading →

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

“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... Continue Reading →

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

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... Continue Reading →

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

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... Continue Reading →

Pipeline Crossings of Underground Obstructions [Gaille Energy Blog Issue 74]

More than 2.5 million miles of pipeline move American oil and gas production to refineries and consumers.  The U.S. Energy Information Administration is tracking an additional $100 billion of new natural gas projects, which would add more than 10,000 miles... Continue Reading →

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