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Inflation & Energy Construction [Gaille Energy Blog Issue 97]

  • Posted by scottgaille
  • On June 21, 2022
  • 0 Comments
With United States inflation running at a 40-year high, energy contractors are increasingly concerned about its impact.  The below table illustrates the extent to which various measures of construction costs are steepening:    GAILLE PLLC represents both owners and contractors with respect to the negotiation, drafting, and administration of more than a billion dollars of energy construction […]
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Price and Time Adjustments in Energy Construction and Services Agreements [Gaille Energy Blog Issue 96]

  • Posted by scottgaille
  • On May 17, 2021
  • 0 Comments
I am pleased to announce my new article in this month’s edition of the Energy Law Journal: REDUCING CONFLICT AND RISK: WHY PARTIES BENEFIT FROM USING ENUMERATED ADJUSTMENT CLAUSES IN ENERGY CONSTRUCTION AND SERVICES AGREEMENTS Synopsis: As the United States transitions to more renewable energy sources, spending under energy construction and services agreements is expected to […]
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The Energy Transactions Boutique: A New Legal Service Delivery Model [Gaille Energy Blog Issue 95]

  • Posted by scottgaille
  • On October 5, 2020
  • 0 Comments
This Friday I’ll be speaking at SparkCon, a conference that focuses on innovations in the energy industry. One of the innovations I’ll be discussing is how GAILLE PLLC is challenging the legal service delivery models available to the energy industry. Over the last six years, we have been developing a new legal service delivery model […]
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Incentive-Based Compensation for Actual Cost and Time & Materials Construction/Services Contracts [Gaille Energy Blog Issue 94]

  • Posted by scottgaille
  • On September 16, 2020
  • 0 Comments
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 […]
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4 Types of Construction Compensation: Lump Sums, Unit Prices, Time & Materials, and Actual Costs [Gaille Energy Blog Issue 93]

  • Posted by scottgaille
  • On September 7, 2020
  • 0 Comments
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 […]
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Adjustment Clauses in Services and Construction Agreements [Gaille Energy Blog Issue 92]

  • Posted by scottgaille
  • On July 11, 2020
  • 0 Comments
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 […]
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A Case for Optimism [Gaille Energy Blog Issue 91]

  • Posted by scottgaille
  • On June 22, 2020
  • 0 Comments
I spent Father’s Day visiting my parents in South Texas.  Much of our conversation was about the state of the world and how bad things have been this 2020.  But the trajectory of human progress—like the stock market—is not a straight line. There are ups-and-downs.  There are bumps in the road.  There always have been.  There […]
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The Disincentives Created by Bad Luck in the Energy Industry [Gaille Energy Blog Issue 90]

  • Posted by scottgaille
  • On May 30, 2020
  • 0 Comments
In just one decade, the energy sector has seen three dramatic busts: (1) the 2008-09 financial crisis; (2) the 2014-15 oil crash; and (3) the 2020 COVID-19 pandemic (the “Three Crashes”). The 2020 crash may be the worst yet. One of my clients lamented yesterday: “Half of the people I know in the energy industry have lost their […]
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How Have Law Firms Been Impacted by COVID-19? [Gaille Energy Blog Issue 89]

  • Posted by scottgaille
  • On May 28, 2020
  • 0 Comments
Like most other businesses, law firms, too, are suffering the economic effects of COVID-19. Although many lawyers are able to work just as efficiently from their homes as they can from their offices, the impacts of COVID-19 on clients often get passed through to lawyers. The below chart from the Institute for Supply Management–Houston is […]
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Checklist and Compendium of COVID-19 Force Majeure Issues [Gaille Energy Blog Issue 88]

  • Posted by scottgaille
  • On May 19, 2020
  • 0 Comments
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 […]
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