International Construction Law Review

Chantal-Aimée Doerries KC; Professor Douglas Jones AO

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WHITHER THE PRACTICE OF CONSTRUCTION LAW? WHAT IN-HOUSE COUNSEL SEEK/REQUIRE/ DEMAND OF OUTSIDE COUNSEL

PETER HUGHES1

Attorney, Denver, Colorado

News reports on “the construction industry” are often misleading: they report on one sector of the industry rather than the industry as a whole. Outside counsel serving construction company clients need to recognise the specific demands of different types of construction, construction clients, and construction companies.

MAJOR SECTORS IN THE CONSTRUCTION INDUSTRY

There are several major sectors in the construction industry, each with its own particularities, project problems, and business cycle. Generally, these sectors are residential construction, commercial construction, industrial projects, heavy infrastructure, and national government projects. Outside counsel should be aware of the differences in the nature of these differing projects, since they will affect the structure of the project and its contracts and financing, the conduct of contract negotiations, the nature of the claims which might arise, the structure of settlement negotiations, the availability of insurance or other financial resources involved, and the participation of insurers in claims settlement.

Residential construction is generally performed for developer clients of the builder by local or regional residential construction companies.

Commercial construction usually involves vertical construction. Again, these are often for developer clients, but are performed by the larger regional or national general contractors, with substantial design and oversight by architects.

Industrial construction is performed for large industrial clients. These tend to be very large and complex projects, often with multiple tiers of management and project delivery. They are performed by national or international engineering/construction companies

1 Peter Hughes is an attorney now in private practice in Denver, Colorado. He recently retired as Vice-President and Chief Counsel of CH2M HILL Constructors, Inc. Before that he served in the Legal & Insurance Department of Bechtel for many years. He is also Executive Director of the Water Design-Build Counsel. This article is based on remarks given at the 2012 Annual Meeting of the American College of Construction Lawyers in Laguna Beach, California.

Pt 3] Whither the Practice of Construction Law?

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