Volume 46, Issue 5 - June 2011

ContractGlazing

Updated Model Contracts Address Contractual Topics for Glaziers

Several updates to the latest ConsensusDOCS model contracts for building design and construction relate to language that would affect the contract glazier. Carrie L. Ciliberto, Esq., deputy executive director for ConsensusDOCS LLC, points out that the new version “was written with an overall eye toward keeping subcontractors up to speed on best practices.”

Section 750 focuses on the subcontract agreement. Section 5.4.1 notes that consequential damages flowed to the subcontractor have been limited to damages for which an owner is entitled to collect. The document now reads: “Except for any (a) liquidated, consequential, or other damages that the Owner is entitled to recover against the Constructor … and (b) losses covered by insurance required by the Subcontract Documents, the Constructor and the subcontractor mutually waive all claims against each other for consequential damages …”

A section on owner information (4.2.1) was revised to read, “Unless expressly prohibited by the prime agreement, the Constructor shall promptly provide to the Subcontractor the following information received from the Owner (a) upon the Subcontractor’s request, information regarding the Owner’s financial ability to pay for the Work, and (b) notice of any material variation in the Owner’s financial ability to pay …”

Updates to the retainage section (8.2.2) note “When an Owner reduces the retainage held from the Constructor, the Constructor must similarly reduce its retainage for [the] Subcontractor.”

Ciliberto adds that there is also a new 703 purchase agreement for non-commodity goods. This, she explains, could be used for specialty/custom glass and glazing materials.



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