Jeremy Baker

This handbook is written from a broad range of viewpoints, including the owner/developer’s, architect’s, contractor’s, subcontractor’s, construction manager’s, insurer’s, and lender’s. It focuses on the various technical and complex issues that are triggered by every contract for construction or related services and guides the contract negotiators and drafters to solutions for those issues. The chapters identify the issues and guide the parties through the maze of difficult concepts and… Show more

This handbook is written from a broad range of viewpoints, including the owner/developer’s, architect’s, contractor’s, subcontractor’s, construction manager’s, insurer’s, and lender’s. It focuses on the various technical and complex issues that are triggered by every contract for construction or related services and guides the contract negotiators and drafters to solutions for those issues. The chapters identify the issues and guide the parties through the maze of difficult concepts and choices, including bidding the contract; negotiating the contract and subcontracts; public-private partnerships; construction insurance; statutory construction payment procedure; labor issues; MBE, WBE, and DBE programs; environmental issues; LEED and green construction; industrial and EPC projects; and drafting alternative dispute resolution terms. With over 100 editable forms and sample contract clauses, this handbook will enhance the likelihood of a successful project and benefit the industry and the various industry professionals by the avoidance of disputes and the costly and unproductive expense of resolving those disputes. Show less

Presentation for the Construction Management Association of America (CMAA) by members of the American Bar Association (ABA) Forum on Construction Law, including Jeremy S. Baker of Baker Law Group LLC (https://buildchicagolaw.com), Patrick J. O'Connor, Claramargaret H. Groover, and Robin Goldberg Banks.

This post is about “designing” the web of contracts for design and construction projects. That web is called a “project delivery method,” and there are many ways to engineer that web of contracts. The article is not about claims or disputes. Not overtly, at least. It does, however, have a decided “dispute resolution” overtone because good project delivery methods and contracts can minimize disputes.

On December 10, 2020, Jeremy presented “Construction Contracts Primer: What Real Estate Attorneys Should Know” to The Chicago Bar Association’s Real Property Law Committee. This presentation focuses on the importance of giving thoughtful consideration to the project delivery method, their insurance ramifications, and construction pricing issues, all before selecting the type of design or construction contract. Jeremy’s Slide Deck and Written Resources are linked.

The choice between arbitration and court litigation complicated. Arbitration is no panacea. Some disputes are definitely better suited to litigation in a court of competent jurisdiction than arbitration. However, Illinois courts and law are no longer hostile to arbitration, and recognize its many advantages.

Clients have spoken, and their in-house counsel, lawyers, and mediators now understand that clients want their disputes resolved quickly — faster than they typically are in traditional mediation and arbitration. Most construction and commercial disputes settle and are not adjudicated. Early settlements reduce expenses and save time that clients would rather devote to their businesses. Early settlements also reduce the uncertainty inherent in litigation and arbitration — uncertainty that is… Show more

Clients have spoken, and their in-house counsel, lawyers, and mediators now understand that clients want their disputes resolved quickly — faster than they typically are in traditional mediation and arbitration. Most construction and commercial disputes settle and are not adjudicated. Early settlements reduce expenses and save time that clients would rather devote to their businesses. Early settlements also reduce the uncertainty inherent in litigation and arbitration — uncertainty that is toxic to business interests. Guided Choice Mediation focuses on early and efficient dispute resolution. It was created by a prominent group of mediators as a public interest project. Show less

There are good reasons for real estate developers and project owners to prefer a “Fixed Fee” approach over a “Cost-Plus-Fee-up-to-Guaranteed-Maximum-Price (GMP)” approach to paying for construction work. But Cost-Plus GMP Contract Agreements have many virtues as well.

Which is best? There is no one correct answer.

Much depends on the project-specific goals. What does the developer or project owner most highly value? Speed of project delivery and firm pricing are, for example… Show more

There are good reasons for real estate developers and project owners to prefer a “Fixed Fee” approach over a “Cost-Plus-Fee-up-to-Guaranteed-Maximum-Price (GMP)” approach to paying for construction work. But Cost-Plus GMP Contract Agreements have many virtues as well.

Which is best? There is no one correct answer.

Much depends on the project-specific goals. What does the developer or project owner most highly value? Speed of project delivery and firm pricing are, for example, often in conflict.

There are big differences between the Fixed Fee and Cost-Plus GMP approaches. Usually, when I get involved in a project, I will have a strong preference for one over the other.

I often ask my owner and developer clients to rank these project goals, in order of priority:

high quality final product
control over design decisions
speed of project delivery
not exceeding a price point
contract administration ease
dispute avoidance
other factors Show less

Design professionals must comply with a variety of federal, state, and local statutes, rules, and codes that require certain public and commercial buildings to be designed in a manner so they are readily accessible to, and usable by, persons with certain kinds of disabilities. Such “accessibility requirements” address things like ensuring persons in wheelchairs have accessible routes into buildings; that doors are designed wide enough to allow their passage; that light switches, thermostats… Show more

Design professionals must comply with a variety of federal, state, and local statutes, rules, and codes that require certain public and commercial buildings to be designed in a manner so they are readily accessible to, and usable by, persons with certain kinds of disabilities. Such “accessibility requirements” address things like ensuring persons in wheelchairs have accessible routes into buildings; that doors are designed wide enough to allow their passage; that light switches, thermostats, and electrical outlets are within their reach; and that kitchens and bathrooms include features, and are laid out in such a way, that an individual in a wheelchair can maneuver around and make use of the space. These requirements have important and worthy aims, but they can create unique liability exposures for design professionals including architects. Show less

The very act of two project participants coming together to thoughtfully negotiate a design and construction contract has a benefit unto itself – one that is separate from the piece of paper produced at the end of the contract negotiation.

Mechanics liens are a powerful tool to help secure payment on Illinois projects. In turbulent economic times, liens can be particularly useful to architects, engineers, and contractors concerned about their clients’ willingness – or ability – to pay for design and construction services. Liens can sometimes motivate project owners and lenders to pay for design and construction services. Claimants who meet certain short deadlines, and make technical filings with correct content, can often receive… Show more

Mechanics liens are a powerful tool to help secure payment on Illinois projects. In turbulent economic times, liens can be particularly useful to architects, engineers, and contractors concerned about their clients’ willingness – or ability – to pay for design and construction services. Liens can sometimes motivate project owners and lenders to pay for design and construction services. Claimants who meet certain short deadlines, and make technical filings with correct content, can often receive favorable treatment under the Illinois Mechanics Lien Act. However, liens are no panacea, and they have potential downside along with their upside. Show less

For years, lawyers and insurance brokers have provided limiting advice to architects and engineers. Together, we have put architects and engineers in a tiny little box. We advise architects and engineers to stay far away from the means and methods of construction. To not make promises about the outcome of the project. To give no warranties. No assurances about schedule. And to not guarantee construction costs. These are just a few examples. The list goes on and on… So what is the fallout of… Show more

For years, lawyers and insurance brokers have provided limiting advice to architects and engineers. Together, we have put architects and engineers in a tiny little box. We advise architects and engineers to stay far away from the means and methods of construction. To not make promises about the outcome of the project. To give no warranties. No assurances about schedule. And to not guarantee construction costs. These are just a few examples. The list goes on and on… So what is the fallout of this on architects and engineers? It is profound.

Together, our advice has kept designers from participating in available profit centers. From taking a more hands-on role during construction. From ensuring their design intent comes to fruition. From taking a leading role in value engineering, and helping to steer sensible changes in the field during construction. These are just a few examples of how design professionals have ceded important project roles to contractors. Show less

There is no virtue in overly and unnecessarily long design and construction contracts. But unduly short construction contracts have no virtue either. Contracts with “gray” areas leave too much open for debate, and this can lead to unnecessary wasteful litigation.

Real estate developers and property owners sometimes make a mistake by entirely outsourcing supervision of the monthly draw process to the title insurer hired by their lenders. But I counsel people against the over-rely on title insurer strategy.

Contractor “callback periods” and “warranties of quality” are different concepts. The distinction between them is a little understood – yet very important – nuance in construction contracts.

Callback periods frequently do have a contractual expiration date, often one year after completion of work. This limits the time when contractors must voluntarily come back to the site to fix defects.

Warranties of quality should not expire on any given date. The obligation to “build in a… Show more

Contractor “callback periods” and “warranties of quality” are different concepts. The distinction between them is a little understood – yet very important – nuance in construction contracts.

Callback periods frequently do have a contractual expiration date, often one year after completion of work. This limits the time when contractors must voluntarily come back to the site to fix defects.

Warranties of quality should not expire on any given date. The obligation to “build in a workmanlike manner” is a quality standard. If contractors fail to meet this standard, they should be ‘on the hook’ for however long the applicable statute of limitations allows lawsuits or arbitration claims. Show less

Construction Management (CM) is not a single approach to project delivery. Rather, it is a sliding scale with endless possible permutations depending on the project and its participants.

The ends of the spectrum are Construction Manager as Constructor (CMc), which is also sometimes known as “Construction Manager at Risk,” and the Construction Manager as Adviser (CMa) delivery method.

This post discusses the Construction management project delivery method, both in general terms… Show more

Construction Management (CM) is not a single approach to project delivery. Rather, it is a sliding scale with endless possible permutations depending on the project and its participants.

The ends of the spectrum are Construction Manager as Constructor (CMc), which is also sometimes known as “Construction Manager at Risk,” and the Construction Manager as Adviser (CMa) delivery method.

This post discusses the Construction management project delivery method, both in general terms and as framed by the American Institute of Architects’ (AIA) new 2019 CMc and CMa Contract Documents. Show less

Compared to its widely-used B152-2007 predecessor, the new B152-2019 Interior Design Agreement contains many changes. The new B152 differs more, textually, from its predecessor than most updated AIA Contract Documents I have seen recently.

Take Furniture, Furnishings, and Equipment, for example. The phrase and its “FF&E” abbreviation appeared just 21 times in the B152-2007. By contrast, the B152-2019 contains 93 references to FF&E.

Arbitration was once the darling of the construction industry, with parties intentionally sacrificing the safeguards of litigation, and its expensive and inefficient procedures, in favor of fair, quick, and cost-efficient dispute resolution.

Many in the industry, including the authors, continue to believe that knowledgeable construction arbitrators reliably produce better decisions, even without arcane litigation procedures, than judges who may lack design and construction… Show more

Arbitration was once the darling of the construction industry, with parties intentionally sacrificing the safeguards of litigation, and its expensive and inefficient procedures, in favor of fair, quick, and cost-efficient dispute resolution.

Many in the industry, including the authors, continue to believe that knowledgeable construction arbitrators reliably produce better decisions, even without arcane litigation procedures, than judges who may lack design and construction knowledge.

However, the construction arbitration process has fallen into disfavor with many. Its critics complain that arbitration’s advantages can be lost when the process is seized by lawyers who treat arbitration like their “scorched earth” courtroom trial practice. With lawyers focused on arbitration rulemaking, administration, and operation, not surprisingly arbitration proceedings can resemble the courtroom litigation familiar to many attorneys.

In response, this article proposes five rules to empower arbitrators to transform traditional arbitration into an arbitrator-directed process in which knowledgeable arbitrators, by their expertise and force of will, optimize the fairness and efficiency of arbitration. In this process, the arbitrator would assume greater control over the conduct of the evidentiary hearings and advise counsel of the arbitrator’s thoughts about the merits of the dispute in real time.

This proposal aims to improve construction arbitration by emphasizing speed and efficiency, without sacrificing due process or quality decision-making. Show less

Is it worth pursuing your construction claim?

The decision to proceed may not be clear-cut. This post analyzes some factors potential claimants should consider when determining whether to file a lawsuit or demand for arbitration.

I wrote the article below (published article available here) during the last major downturn, around 2009, but many of the same thoughts and principles apply in 2020.

The recent economic downturn has left many in the construction industry wondering… Show more

Is it worth pursuing your construction claim?

The decision to proceed may not be clear-cut. This post analyzes some factors potential claimants should consider when determining whether to file a lawsuit or demand for arbitration.

I wrote the article below (published article available here) during the last major downturn, around 2009, but many of the same thoughts and principles apply in 2020.

The recent economic downturn has left many in the construction industry wondering whether it is worth pursuing their construction claims. Several factors go into that decision, some of which are quantifiable and tangible, others of which are personal and emotional.

Assuming the intangible factors do not win out, one should decide whether to pursue the claim in the same manner one would determine whether to make any investment: if the likely gain exceeds the likely loss, then an investment in the claim may be economically worthwhile. Show less

I believe lawyers have a role to play, with smarter contracts and an emphasis on dispute avoidance. The constant threat of litigation is like a gravitational field – it warps the industry. It keeps design professionals from thinking about construction techniques, means, methods, and other common-sense things which could benefit everyone in design and construction.

The Illinois Lien Act balances competing interests. Sure, one of its goals is to help designers and contractors secure payment for services rendered from owners, developers, and lenders. However, the Lien Act contains very specific requirements for lien claimants to meet…with exacting precision. This furthers another goal: to empower property owners, developers, lenders, and purchasers to confidently transact in real property – without being subject to an undue risk of mechanics lien claims. If… Show more

The Illinois Lien Act balances competing interests. Sure, one of its goals is to help designers and contractors secure payment for services rendered from owners, developers, and lenders. However, the Lien Act contains very specific requirements for lien claimants to meet…with exacting precision. This furthers another goal: to empower property owners, developers, lenders, and purchasers to confidently transact in real property – without being subject to an undue risk of mechanics lien claims. If a lien is untimely, or mis-describes the property or parties, or has another error, it is likely invalid. The Lien Act is about predictability, not fairness. Developers and project owners should never lose lien claims if they understand the rules while promote that predictability. Show less

Dispute resolution clauses in contracts should be drafted to promote the negotiated resolution of disputes in a fair, timely, and cost-effective manner before the parties must resort to binding dispute resolution methods, such as arbitration or litigation, which are expensive and hurt business relationships.

This article summarizes considerations for drafting contractual dispute resolution provisions.

When negotiating contracts, architects and engineers face a variety of risky contract terms – but a few kinds of clauses stand out as being particularly risky and prone to misuse.

The AIA’s “new” B101-2017, the latest version of its flagship Owner-Architect Agreement, carries over concepts from its widely-used predecessor, B101-2007. Users of the 2007 form will find the 2017 revision familiar. But the new B101-2017 is different in important and subtle ways, and some of its changes may be controversial. Architect and Owner users of the B101 form may, therefore, wish to reconsider and refresh their contracting strategy for the next decade.

The American Institute of Architects (AIA) simplified the process of targeting project-specific “Sustainable Objectives” by releasing its Sustainable Projects Exhibit, E204-2017, in its 2017 Contract Document rollout. The E204 exhibit is compatible with Owner-Architect Agreements (like B101-2017), Owner-Contractor Agreements (like A101-2017), and other contract forms. Many newer AIA forms require the Owner and Architect to complete the E204-2017 contract exhibit, and to incorporate it into all… Show more

The American Institute of Architects (AIA) simplified the process of targeting project-specific “Sustainable Objectives” by releasing its Sustainable Projects Exhibit, E204-2017, in its 2017 Contract Document rollout. The E204 exhibit is compatible with Owner-Architect Agreements (like B101-2017), Owner-Contractor Agreements (like A101-2017), and other contract forms. Many newer AIA forms require the Owner and Architect to complete the E204-2017 contract exhibit, and to incorporate it into all project contracts related to the Sustainable Objective. While Owners can delete this requirement, the E204-2017 form provides a good roadmap for Owners, Architects, Contractors, and others who work on projects that target Sustainable Objectives to follow. Show less

The AIA’s 2013 Digital Practice Documents play a prominent – yet little understood – role in the AIA’s newest Contract Documents. While previously optional, Digital Practice Document use is now expressly required by the unedited standard form language of the Owner-Architect Agreement (B101-2017), Owner-Contractor Agreement (A101-2017), General Conditions of the Contract for Construction (A201-2017), Contractor-Subcontractor Agreement (A401-2017), Architect-Subconsultant Agreement (C401-2017)… Show more

The AIA’s 2013 Digital Practice Documents play a prominent – yet little understood – role in the AIA’s newest Contract Documents. While previously optional, Digital Practice Document use is now expressly required by the unedited standard form language of the Owner-Architect Agreement (B101-2017), Owner-Contractor Agreement (A101-2017), General Conditions of the Contract for Construction (A201-2017), Contractor-Subcontractor Agreement (A401-2017), Architect-Subconsultant Agreement (C401-2017), and other AIA contract forms. This post identifies the AIA’s Digital Practice Documents – the E203-2013, G201-2013, and G202-2013 – and describes practical considerations for their use. Show less

Jeremy Baker co-presented with Berkley Design Professional’s Senior Vice President and Chief Risk Management Officer Andrew Mendelson, a fellow of the American Institute of Architects, on a detailed review of AIA Document A201™-2017, General Conditions of the Contract for Construction, and discuss the essential information that design professionals need to understand in order to administer the construction project in compliance with the requirements for health, safety, and welfare of the… Show more

Jeremy Baker co-presented with Berkley Design Professional’s Senior Vice President and Chief Risk Management Officer Andrew Mendelson, a fellow of the American Institute of Architects, on a detailed review of AIA Document A201™-2017, General Conditions of the Contract for Construction, and discuss the essential information that design professionals need to understand in order to administer the construction project in compliance with the requirements for health, safety, and welfare of the project constituents, project owner and the general public. Show less

This proposal attempts to improve construction arbitration by emphasizing speed and economy without sacrificing due process or quality decision-making. The proposed rules are probably best suited for medium- and smaller-sized arbitrations rather than the large disputes whose economy of scale can support lengthier and more cumbersome processes. These proposed rules, which supplement any existing arbitration rules that bind the parties, vest more control of the arbitration process in the… Show more

This proposal attempts to improve construction arbitration by emphasizing speed and economy without sacrificing due process or quality decision-making. The proposed rules are probably best suited for medium- and smaller-sized arbitrations rather than the large disputes whose economy of scale can support lengthier and more cumbersome processes. These proposed rules, which supplement any existing arbitration rules that bind the parties, vest more control of the arbitration process in the arbitrator. Show less

I was a panelist in a presentation to discuss how engineers and architects manage construction-related risks using insurance products and contractual provisions.

At this day-long IICLE Seminar, I will join an all-star team of Construction Attorneys and co-authors of the IICLE Construction Dispute Litigation handbook (2018 edition). I will explore the legal and contractual factors that determine architect and engineer liability exposure, including how design professionals face risks unique from other project participants.

Explain how AIA’s Digital Practice Documents can help manage risks posed by the rapidly evolving ways we now transmit, use, and rely on digital data. Address E203-2013 (BIM and Digital Data Exhibit), G201-2013 (Project Digital Data Protocol Form), and G202-2013 (Project BIM Protocol Form).

Present on various aspects of professional liability law, including: (i) reviewing the grounds for professional liability claims; (ii) identifying who can bring a claim; (iii) examining common sources of professional liability claims; (iv) reviewing defenses to liability claims; (v) determining damages; (vi) participating in dispute resolution: arbitration, mediation, litigation.

Explain how the Digital Practice Documents can help to manage risks posed by the rapidly evolving ways we now transmit, use, and rely on digital data.

Present on understanding AIA Document A201-2017 and general conditions on construction contracts. Learning objectives will include: (i) spot the circumstances when A201-2017 typically applies, including the types of contracts and projects frequently governed by the General Conditions; (ii) discover the relationships between the architect, owner and contractor, and how the A201-2017 defines the responsibility, authority, and expectations of each; (iii) identify key General Conditions terms that… Show more

Present on understanding AIA Document A201-2017 and general conditions on construction contracts. Learning objectives will include: (i) spot the circumstances when A201-2017 typically applies, including the types of contracts and projects frequently governed by the General Conditions; (ii) discover the relationships between the architect, owner and contractor, and how the A201-2017 defines the responsibility, authority, and expectations of each; (iii) identify key General Conditions terms that affect architects, including the scope and extent of an architect’s duties in the construction administration phase; (iv) earn to use A201-2017 as a tool to inform architects when they must take action by certain deadlines, create writings, and monitor the progress of construction. Show less

I presented on professional liability law at a day-long seminar for engineers in Lombard, IL , on topics including: grounds for professional liability claims; who can bring a claim; common sources of professional liability claims; defenses to liability claims; determining damages; and anticipating in dispute resolution, i.e., arbitration, mediation, litigation.

I co-presented a webinar -- with Michael B. Bomba, director and counsel on the AIA Contract Documents team at the American Institute of Architects (AIA) -- on how to use and understand the AIA’s 2013 Digital Practice Documents and the prominent role they play in the AIA’s newly released 2017 Contract Documents. We explained how the Digital Practice Documents can help manage risks posed by the continuous evolution of how we transmit, use, and rely on digital data.

At the Sofitel Hotel in Chicago, IL, I presented to CSI Chicago on the 10 top recurring and important legal risks related to the construction/contract documentation and building of construction projects.

I presented on the role of the American Institute of Architect’s (AIA) Digital Practice documents BIM and Digital Data Exhibit (E203-2013), Project Digital Data Protocol Form (G201-2013), and Project BIM Protocol Form (G202-2013), and how to manage risks in the use, transmission, and reliance-upon digital data, at the ACEC's annual convention in Washington, D.C.

How engineering firms can structure themselves to lead design-build teams, work with strategically allied contractors, and seek greater profit with less risk than traditional projects.

Addresses responsibilities and liability exposures of architects and engineers in the design and construction process.

Construction project planning should anticipate disputes, and contracts with all project participants should include methods to resolve these disputes in a timely, fair, and cost-effective manner. Court litigation may not be the best process to resolve construction project disputes but there are good alternatives. They are generically called alternative dispute resolution (ADR) procedures and are popular in the construction industry.

Arbitration is a form of alternative dispute resolution (ADR) resulting in awards that bind the disputing parties. Arbitration is an alternative to litigation. In arbitration, as in litigation, a neutral thirty party issues a binding and enforceable decision to resolve disputes the parties could not settle. Arbitration awards are in some ways similar to, and can be converted into and enforced like, court judgments.

How the AIA’s 2013 Digital Practice Documents play a prominent role in the AIA’s newly released 2017 Contract Documents. The Digital Practice Documents can manage risks posed by the continuous evolution of how we transmit, use, and rely on digital data.

How engineering firms can structure themselves to lead design-build teams, work with strategically allied contractors, and seek greater profit with less risk than traditional projects.

Alternative Dispute Resolution Terms in Construction Contracts

The AIA has completed a total reexamination of its core contracts and issued a new form A201 General Conditions of the Contract for Construction. The A201 is the most frequently used document of all construction agreements, and virtually all AIA contracts are intended to work with it. To help construction lawyers understand and work with the sweeping changes of these widely used general conditions, The 2017 A201 Deskbook identifies and analyzes every significant change made to the A201… Show more

The AIA has completed a total reexamination of its core contracts and issued a new form A201 General Conditions of the Contract for Construction. The A201 is the most frequently used document of all construction agreements, and virtually all AIA contracts are intended to work with it. To help construction lawyers understand and work with the sweeping changes of these widely used general conditions, The 2017 A201 Deskbook identifies and analyzes every significant change made to the A201 document, and also includes for the first time a section-by-section critical analysis of the A201, with case law interpretations and practice tips. Show less

Most complex commercial disputes settle before awards and judgments. Yet, in court and often in arbitration, today’s litigation community often resists serious settlement negotiations before engaging in extensive, costly document and expert discovery. These activities often result in substantial delay, increased animosities, and destruction of valuable relationships. The Guided Choice Process, the newest mediation innovation, offers a means to achieve earlier settlements, reducing the time and… Show more

Most complex commercial disputes settle before awards and judgments. Yet, in court and often in arbitration, today’s litigation community often resists serious settlement negotiations before engaging in extensive, costly document and expert discovery. These activities often result in substantial delay, increased animosities, and destruction of valuable relationships. The Guided Choice Process, the newest mediation innovation, offers a means to achieve earlier settlements, reducing the time and cost of dispute resolution, and increasing user satisfaction. Show less

As part of BuildingsNY 2016, explored the unique features of the AIA’s updated design-build agreements and the key differences from the 2004 documents.

Outlines the benefits of using an architect-led design-build business model. Instructs architects on how to structure their businesses to contract directly with owners as the prime member of a design-build team, subcontracting the actual construction to a general contractor teammate.

Provide an overview of engineers’ and surveyors’ duties and obligations, including common professional liability causes of action and complying with the standard of care.

Discusses what international design firms must know about U.S. anti-bribery laws and highlights the importance of a Foreign Corrupt Practices Act (FCPA) compliance program.

Define requirements, responsibilities, and relationship between the architect, owner and contractor. Avoid undesirable results, disputes, claims, and unmet expectations. Provide a framework to help guide effective client communication, negotiations, and project management.

Three-day conference with 60+ sessions all offering AIA and GBCI credits. My session focused on the contractual risks and opportunities unique to sustainable design and construction projects.

Gives the international construction lawyer a general perspective of American construction law applied to a typical commercial project.

Design professionals tempted by the lure of overseas work need to understand the Foreign Corrupt Practices Act (“FCPA”). FCPA compliance is an important loss prevention issue. While exchanging gifts and things of value is a way of life in many countries, U.S. anti-bribery laws apply to the overseas operations of U.S. companies. The FCPA report does not prohibit certain “facilitating” payments to expedite routine action. However, corruptly paying “anything of value,” directly or indirectly, to… Show more

Design professionals tempted by the lure of overseas work need to understand the Foreign Corrupt Practices Act (“FCPA”). FCPA compliance is an important loss prevention issue. While exchanging gifts and things of value is a way of life in many countries, U.S. anti-bribery laws apply to the overseas operations of U.S. companies. The FCPA report does not prohibit certain “facilitating” payments to expedite routine action. However, corruptly paying “anything of value,” directly or indirectly, to keep or secure business has led to huge losses for some U.S. companies — and prison for their executives. The line between legal “grease” payments and illegal bribery is thin. This article discusses what international design firms must know about U.S. anti-bribery laws and highlights the importance of an FCPA compliance program. Show less