Capital Project Strategies, LLC
11710 Plaza America Drive
Suite 2000
Reston, Virginia 20190
t: 703.871.5079
f: 703.433.9313
 

Contract Drafting and Negotiations

We have extensive experience in drafting and negotiating contracts of all types in the capital project environment.  Clients who have used our services include public and private sector owners, contractors, subcontractors, designers, construction managers, and others.  This experience includes:

  • Drafting and negotiating design-build contracts for public and private sector projects.
  • Drafting and negotiating EPC contracts in the power generation, petrochemical, and process sectors.
  • Drafting and negotiating at-risk construction management contracts for commercial and multifamily residential sectors.
  • Drafting concession agreements for public-private partnerships.
  • Drafting and negotiating operations and maintenance contracts.
  • Drafting and negotiating major trade subcontracts.
  • Modifying standard form contracts, such as AIA, DBIA, AGC, EJCDC, FIDIC and JCT, as appropriate.

We are strong advocates of using standard form contracts as a starting point for contracting – they are convenient and cost-effective.  This is also true for design-build projects, where we have played an important industry role.  The founder of Capital Project Strategies, Mike Loulakis, was the primary drafter of the DBIA standard form contracts, and was also actively involved in developing the latest versions of the AGC and EJCDC design-build families of forms.

It is important to note that our approach to contract drafting and negotiation does not change based on the party we are representing:

  • We believe in reasoned, reasonable risk allocation. 
  • We believe that contracts should be capable of being read and understood by non-lawyers. 
  • We believe that all contracts need to be drafted in light of current market conditions – factoring in the realities of insurance, bonding, and market demand. 
  • We believe that major contracts need to be negotiated with a team, including individuals with a legal background, a technical background, and a strong commercial background. 
  • We do not find that the “golden rule” – the party with the superior bargaining position dictating the contract terms – is very productive for long-term project success.

The descriptions in the “Industries” section of this website highlight some of the sectors where we have broad, and what we consider unique, contract drafting and negotiation experience.  These sectors are:

  • Power generation, petrochemical, and process projects
  • Large transportation and transit projects using design-build and public-private partnership delivery approaches
  • Water and wastewater projects using design-build delivery systems
  • Public sector projects using a design-build or public-private partnership delivery system
  • Multifamily housing projects
  • Design professional contracts

Our value proposition in these sectors is rather straightforward.  We not only have a broad understanding of the “terms and conditions” associated with these types of contracts, but we also excel in understanding market and commercial realities in these industries.  As a result, we have a strong understanding of what are appropriate levels of fee, contingency, and risk markups for a particular project, as well as what levels of risk can or should be tolerated by each side of the negotiating table.

 

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