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Commentary – Owner Financing Clauses in Construction Contracts Are Not Boilerplate
Most owners overlook this construction contract risk In a recent contract review, I found a redline that should concern every owner, project manager, and procurement professional. The contractor had taken the owner’s obligation to provide evidence of financial arrangements and turned any breach of that clause into a material breach. That is not a small…
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Industry Watch: How This Commonly Accepted Clause Can Legally Shut Down Your Job
Most owners sign the AIA A201 General Conditions without ever discussing Section 2.2. Until it becomes a problem. A recent court decision analyzed in Lexology highlights what happens when an owner fails to provide “evidence of financial arrangements” as required under AIA A201 §2.2. In that case, the court sided with the developer after financial…