Contracting Issues for 2022
Aaron S. Evenchik, Andrew J. Natale, O. Judson Scheaf III, Hahn Loeser
Contractors learned many lessons from 2020-2022 on material/labor availability, price escalation, and contractual allocations of risk. Prudent contractors will consider this in contracts moving forward.
Long gone are the days of large projects that are simply private or public. Large projects are multi-layered when it comes to funding. Federal, state, and local funds may be part of the funding for the development, adjacent infrastructure, and nearby improvements. Municipalities are using tax incentives, or forgivable grants, to spur development in their communities.
Contractors need to investigate the source of funds for both potential lien rights and to ensure they understand the project cash flow.