Construction Contracts and Law

Use Hypo #1, of the four roles (Owner; Architect/Engineer; Contractor; Sub-Contractor), pick 2 you would choose to be and explain why; and why would you not want to be the other two; defend your answers; and,

For the two roles you chose, what do you think are the five most important contract provisions/terms, and why; explain and defend your answers.

Hypo 1: The project is a six-story hotel. There will be site/ground preparation issues that will include subsurface dredging. The four principle parties are: 1. Owner; 2. Architect/Engineer; 3. Contractor; and, 4. Sub-Contractors.

All parties are commercially sophisticated and have dealt with each other on prior residential projects, i. e. homes, but never a hotel. Each hotel room will have a small balcony; a small kitchen; and two bathrooms. The contract negotiations began on January 1st, and the Owner wants to be open and fully running in time for Thanksgiving and the Christmas Holidays. Also, each room must have an extra-large bay window with a scenic view.

The Owner is wealthy but known to be “difficult” and very demanding. The Contractor had one prior bankruptcy, but that was more than 10 years ago.

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