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Published: August 1, 2007
Successful development projects require a multi-disciplinary team. The developer generally assembles a team that includes design professionals, financial advisors and constructors. Most projects, however, can be derailed by inadequate planning for government relations, permitting and contracting. The successful developer will consider key legal requirements at the outset of project development.
Legislative limitations: New laws can preclude development or restrict options. Many businesses consult with government relations firms who monitor and advocate before State and local governments to anticipate and avoid potential regulatory minefields.
Permitting: Every project requires permits. State regulations can dramatically impact project scope, limit the use of the project site, or result in delays and increased costs. Developers should evaluate and create an inventory of potential permits, develop strategies to meet those requirements, and ensure that the project team has the expertise to identify and address regulatory problems.
Construction Contracts: Effective design and construction contracts clearly define the rights and duties of the parties. Proper risk allocation in contract drafting and negotiation reduce unexpected costs and disputes. Key clauses should be tailored to manage risk, including scope, price, differing site conditions, environmental hazards, claims process, indemnification, waivers of damages, and dispute resolution. Additionally, various project delivery systems, such as design-build and construction management, each has its advantages and disadvantages.
Labor and Employment Issues: Contracting parties must understand the wide range of obligations imposed under contracts, collective bargaining agreements, and labor laws. Areas of concern include affirmative action, disability accommodation, pensions and benefit plans, unemployment and workers compensation, and wage and hour requirements.
Advance planning is a key to success of any project. A successful project team understands and anticipates project requirements and limitations. Experienced legal and governmental advisors are an important part of that team.
For more information, contact Mr. Sinderbrad at 608.260.2472 or csinderbrand@axley.com.
Axley Brynelson is pleased to provide articles, legal alerts, podcasts and videos for informational purposes, but we are not giving legal advice or creating an attorney/client relationship by providing this information. The law constantly changes, and our publications may not be currently updated. Before relying on any legal information of a general nature, please consult legal counsel as to your particular situation. While our attorneys welcome your comments and questions, keep in mind that any information you provide us, unless you are now a client, will not be confidential.
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