Understand the issues involved in unit price contracts from the procurement phase of a project through potential disputes.
Construction projects can utilize a variety of pricing arrangements for contracts and change orders. One of the most common pricing methodologies is the unit price arrangement. Unit pricing is considered a fair and equitable way to establish the cost of certain types of work, and because it is all-encompassing, is relatively easy to administer during the project. However, unit price agreements are not without risk and can expose the parties to unforeseen consequences. An understanding of the legal issues involved in unit price contracts from the procurement phase of a project through potential disputes can help owners, design professionals, contractors, subcontractors and their accountants and lawyers mitigate these potential risks. This topic will examine unit pricing in detail, discuss the advantages and disadvantages as compared to other construction pricing arrangements and highlight issues that may arise from the bidding stage through contract close out and the resolution of claims and disputes.
Learning Objectives
- You will be able to describe adjustment of unit prices.
- You will be able to identify bidding and unit prices.
- You will be able to recognize variation in quantity clauses.
- You will be able to review comparison of basic pricing alternatives.
Agenda
Comparison of Basic Pricing Alternatives
- Lump Sum
- Cost Plus Fee
- Guaranteed Maximum Price
- Time and Materials
- Unit Prices
Bidding and Unit Prices
- Bid Mistakes
- Unbalanced Bids
Adjustment of Unit Prices
- Equitable Adjustments
- Qualitative Changes
- Differing Site Conditions
- Extras and Changes
- Variation in Quantity Clauses
- Cardinal Changes
Speakers
Lisa Lombardo,
Gibbons P.C.- Promoted to director in the Gibbons P.C. Commercial & Criminal Litigation Department in January 2019
- Has successfully litigated matters before the state and federal courts of New Jersey and New York, as well as the American Arbitration Association, with a focus on construction matters
- Her experience in commercial litigation and construction litigation is unique in that she represents both plaintiffs and defendants
- She served as co-lead counsel in a three-year long arbitration representing a major university in a claim involving extensive and complex design and construction defects, which resulted in a multimillion-dollar award in our client’s favor and the arbitrator striking down a limitation of liability clause
- Unlike most litigators in the construction arena, she has experience drafting and negotiating contracts, and worked with owners, contractors, subcontractors, and designers on contracts for projects involving academic centers, public schools, laboratory facilities, office buildings, energy facilities, public/private projects, and building additions of varying sizes
- Selected to the Morris/Essex Health & Life magazine’s “Essex County Top Lawyers” list, construction, 2018
- Can be contacted at 973-596-4481 or LLombardo@gibbonslaw.com
Who Should Attend
This live webinar is designed for presidents, vice presidents, contractors, subcontractors, engineers, architects, project managers, contract managers, developers, accountants, controllers, and attorneys.
