Construction

Gordon & Rees' Construction Group consists of more than 50 lawyers who focus their practice on the comprehensive range of legal service required by all participants in the construction industry - architects, engineers, design professionals, design joint ventures, owners, developers, property managers, general contractors, subcontractors, material suppliers, product manufacturers, lenders, investors, state agencies, municipalities, and other affiliated consultants and service providers.

We serve clients who design, develop, or build all types of structures, including commercial buildings, single and multi-family residential projects, industrial facilities, universities, hospitals, museums, observatories, amusement parks, hotels, shopping centers, high-rise urban complexes, jails, airports, bridges, dams, and power plants. We have also been involved in projects for tunnels, freeways, light rail, railway stations, marinas, telecom systems and earth-retention systems. Our experience includes private, public and P3 construction projects.

The Construction Group's lawyers have extensive experience handling a broad array of transactions and dispute resolution matters, including initial drafting, preparation, review and negotiation of contracts, project development issues, delay and disruption claims, bid protests, negotiation of restructuring agreements, cost overruns, default terminations, multi-party construction defect, mechanic's liens, surety, warranty, environmental contamination (sick building, mold, CEQA, NEPA), product liability, geotechnical claims, errors & omissions/professional negligence, insurance, risk management, land use, regulatory issues, and copyright matters.

Transactions & Construction Counsel

Contract drafting, review, preparation, counseling and other transactional work forms a large part of the Construction Group practice. As construction is being planned, every project develops distinct specifications and requirements, and ideas and interests to protect. After a comprehensive analysis of each client's business goals and project objectives, we draft the full spectrum of construction-related contracts, such as prime, construction, design-build, teaming, and joint venture. Our lawyers are well versed with standard form agreements produced by the American Institute of Architects, Associated General Contractors, and the Design-Build Institute of America. We also review contract documents prepared by others and, when we sit down at the negotiating table, we are well equipped to achieve the best result possible for our clients.

Construction projects are multidisciplinary collectives. Our Construction Group mirrors that approach, involving lawyers from Gordon & Rees' Employment, Real Estate, Insurance, Intellectual Property, and Business Transactions Groups.

• Business Transactions & Real Estate: Choice of corporate entity in construction projects is often a key driver in the profitability of projects. Consequently, we advise clients in forming the most appropriate corporate entity for the specific project, whether it is a corporation, partnership, limited liability company, or joint venture. For efficiency and cost-effectiveness, we use standard form documents whenever possible, turning to custom drafting only when necessary. We will not waste our clients' money, or run up bills.
  
  
• Insurance: Over the last decade, the construction insurance landscape has changed dramatically due to the increased costs of general liability policies and defending claims under them. Many projects provide for project specific coverage commonly referred to as Owner Controlled Insurance Policies (OCIPs), which are designed to limit defense of claims to one attorney for all insureds. Our lawyers provide counseling and litigation prevention seminars to owners, developers and general contractors regarding insurance planning and the benefits, common pitfalls and management of Owner Controlled Insurance Policies, "wrap ups," stop loss coverage, and risk management throughout the entirety of a project.
  
  
• Labor & Employment: Employment matters also frequently arise on construction sites. We draft project labor agreements, provide wage and hour advice, and advise on hiring and termination matters.

Construction Disputes & Administration of Contract Claims

Most projects encounter snags during construction, even serious disagreements, but the parties still prefer to finish construction despite disputes. Our lawyers are accustomed to this environment and have advised clients during project Dispute Review Board Processes, regarding compliance with California's SB 800, in bid disputes and protests, stop notices, change order claims, mechanic's liens, and ADA compliance. We also have extensive experience with disputes involving claims for damages due to extra work, delay, disruption, inefficiency, and cost overruns, as well as default terminations, surety representation, indemnity claims, and acceleration issues. For professional design clients, we regularly resolve issues pertaining to architectural copyright claims against architects and design builders; property acquisition, leases and leasebacks; and perform the related tax planning in all these matters. We have substantial expertise and experience in copyright matters, and the Architectural Works Protection Act amendments to the Copyright Act in particular, and we have litigated through to successful jury verdict cases in this area.

When contract disputes can not be resolved during construction, we represent our clients in post construction negotiations on cost overrun and/or delay and disruption claims. We effectively use experts to best position our clients in these negotiations and to prepare our clients case should the matter end up in litigation. We work with our clients and experts to develop the most efficient strategies for resolving these claims.

After construction is complete, we defend general contractors, developers, engineers, architects, environmental consultants, contractors, and material suppliers from post-completion claims for design and construction defects (including building envelope and water intrusion disputes), earth movement claims, construction accidents, job-site injuries, and building product claims. The types of claims typically at issue in construction defect cases include negligence, breach of contract, contribution, common law and contractual indemnity, and breach of warranty. In representing our clients, we aggressively explore all available defenses, including the economic loss doctrine and lack of privity. Our attorneys work closely with construction experts from every discipline to determine and understand the sources and causes of defects. These experts help provide realistic assessments of the cases so that we can advise our clients regarding their potential recovery or liability in the matter.

Our team has a national reputation for successfully handling large, complicated construction disputes for large contractors and design firms, often resolving disputes without the need for expensive, protracted trial. We believe that construction disputes-complex and expensive-are well-suited to alternative dispute mechanisms and, therefore, we focus first on voluntary dispute resolution through the extensive use of mediation. We work regularly with mediators and facilitators from JAMS, AAA and proven independent mediators. When alternative resolution cannot be achieved, our experienced litigators have arbitrated to decision and tried to verdict scores of construction cases on behalf of clients in state and federal courts. Throughout the dispute resolution process, we apportion the case tasks among lawyers and specially trained paralegals in order to maximize efficiency and limit expenses.

Unique Qualifications

The strength of our construction practice builds on our depth of knowledge of the legal, technical, regulatory and business considerations specific to the construction industry. Every day, the potential liabilities of the construction industry continue to expand, the scope of government regulation deepens, and traditional transactions become more complex. As a result, it is imperative for legal counsel to have a well-rounded understanding and direct involvement in the issues that shape the construction industry.

At Gordon & Rees, our Construction Group includes lawyers who have professional training and first-hand experience in related fields such as engineering, construction management, and environmental sciences. We have practical experience working in job trailers as engineers, construction project managers, consultants, and tradesmen. Our lawyers also have leadership experience in various construction industry related trade associations, legal advisory committees and government agencies.

Examples of the unique qualifications of our Construction Group lawyers include the following.

• Construction Industry "Super Lawyers®": Gordon & Rees' Construction Group includes lawyers admitted to practice in Arizona, California, Nevada and Texas who have been consistently rated Super Lawyers® since 2004 (top 5% of lawyers selected by peers in an annual survey conducted by Law & Politics magazine) in the fields of Construction Litigation and Construction/Surety; as well as a San Francisco lawyer who was named one of the best construction lawyers in Northern California by Bay Area Lawyer.
  
  
• Technical Degrees: Gordon & Rees' Construction Group lawyers have degrees in biochemistry, environmental studies, engineering, mathematics, quantitative economics, and decision science. The biochemistry-trained lawyer is also a registered patent attorney with the U.S. Patent and Trademark Office.
  
  
• Expert Mediators: A Gordon & Rees Construction Group lawyer has been recognized for his mediation expertise by receiving a certificate in Mediation and Dispute Resolution from Harvard Law School. Another is a member of the prestigious Panel of Neutrals of the International Institute for Conflict Prevention and Resolution (CPR).
  
  
• Government Leadership in Land Use: A Gordon & Rees Construction Group lawyer previously served for three years as the State of California's Director of the Office of Planning and Research where he was responsible for review of all land use legislation, statewide General and Specific Plans, CEQA Regulations, and liaison with the federal Defense Base Closure and Realignment Commission (BRAC), and chaired both the State's Growth Management Commission and the Geographical Information Systems (GIS) Task Force; and subsequently five years as the Governor's appointed public member to the Santa Monica Mountains Conservancy.
  
  
• Teaching and Publications: Gordon & Rees Construction Group lawyers have taught construction law at the college level and authored numerous articles, newsletters, and treatises on topics such as "Construction Contracts: Forms and Substance," "Changes to Look Out For in New AIA Documents," "Special Topics in Litigation of Disputes Involving Design Professionals and Construction Managers," and various supplements to the CEB publication "California Surety and Fidelity Bond Practice."
  
  
• Leadership in Trade Associations: Gordon & Rees Construction Group lawyers are members of the American Council of Engineering Companies Legal Counsel Forum, the Legal Advisory Committee of the Associated General Contractors of America, the ABA Forum on the Construction Industry, the American Institute of Architects, the Commercial Litigation and Construction Law Sections of local bar associations, the Urban Land Institute, Construction Practice Chapters of the Association of Defense Counsel, the Design Build Institute of America, the San Francisco Barristers Construction Law Committee, and the Design Steering Committee of the ABA Forum on Construction.
  
  
• Tradesmen: A Gordon & Rees Construction Group lawyer began his construction background as a member of the Carpenter's Union, Local 152, with field experience in constructing residential, commercial, and public structures. He has hands-on experience with mobilization, ordering, construction assembly, change orders, design review and scheduling in the building of site improvements, mass-produced housing, commercial structures, custom residences, and commercial tenant improvement work.
  
  
• Industry Regulatory Development: A Gordon & Rees Construction Group lawyer has lobbied in Sacramento on behalf of the building and contractors trades where he was involved with the passage of new legislation affecting residential construction.
  
  
• Presentations: Gordon & Rees Construction Group lawyers are regular presenters at client seminars, industry conferences and legal symposiums on topics including Design-Build, Delay and Disruption Claims & Damages, Contract Forms, Extra Work Claims, Use of Critical Path Method Scheduling, Inefficiency Claims, Mechanic's Liens, Defective Construction, Termination for Default & Convenience, SB800, OCIPS & CCIPS, Insurance, Suretyship, Bonds, and Alternative Dispute Resolution.
  
  
• Comprehensive Range of Structures: Gordon & Rees has served clients who have designed, developed, or built every type of structure, including commercial buildings, residential developments, hospitals, museums, observatories, amusement parks, hotels, marinas, high-rise urban complexes, jails, airports, bridges, dams, and power plants. We have also been involved in projects for tunnels, freeways, light rail, railway stations, telecom systems and earth-retention systems.

Representative Experience

• Represented developer/owner in binding arbitration related to multiple live-work loft projects in San Francisco and obtained an award of over $12 million in a termination-for-default case against the contractor and its joint venture partner.
  
  
• Represented an architectural services company hired for a new performing arts center at a community college. A payment dispute arose over the interpretation of the original contract and the amendments thereto. The community college's statute of limitations arguments and its contractual claims were defeated during arbitration, resulting in a judgment of more than $1 million for our clients.
  
  
• Obtained a multi million dollar settlement for a general contractor in a breach of contract/delay/termination for default case involving a public entity.
  
  
• Represented an insurance company at trial and on appeal in a complex case involving the sinking of a ship at dry-dock.
  
  
• Represented engineering companies, design professionals and project archaeologist in multiple cases involving collapse of structures, including bridge structures, falsework structures and ancient elevated sidewalk structures.
  
  
• Represented developers in bank work-outs and related negotiations with contractors, subcontractors and suppliers to avoid default and foreclosure.
  
  
• Represented contractors in bid protests, including contractors who were not the apparent low bidder at time of bid opening and apparent low responsible bidders responding to protests.
  
  
• Represented a geotechnical engineering firm in litigation/arbitration related to the First Hawaii Center in Honolulu, HI against the multi-million dollar claims of the Contractor and Specialty Subcontractor for extra work, and delays/disruptions.
  
  
• Represented General Contractor in obtaining a $21 million change order on a $63 million project.
  
  
• Represented a homeowner concerning alleged wrongful demolition of property by a public agency and in related tenancy matters.
  
  
• Represented an architect in the enforcement of the design professional's lien claims after owner insolvency.
  
  
• Prepared briefing for a successful appeal related to a good faith settlement by a design professional with a school district.
  
  
• Represented State of California in arbitration proceeding by Contractor relating to Delay, Disruption and Out of Scope Work in construction of a new state prison.
  
  
• Represented Owner in Contract Change Order Disputes and litigation against development manager relating to major commercial project in South of Market area of San Francisco.
  
  
• Represented tunneling contractor in litigation arising out of the collapse of a tunnel and resulting "sinkhole" that swallowed two structures.
  
  
• Obtained summary judgment on behalf of geotechnical engineering firm in $40 million dispute involving Shutters Hotel site in Los Angeles.
  
  
• Obtained a complete defense verdict on behalf of a large civil engineering firm following trial regarding disputed specifications and cost overruns on a large highway project in California.
  
  
• Negotiated a favorable settlement in a nearly 10-figure lost profits case in international arbitration venued in Singapore involving numerous alleged design and construction defects at a wafer fabrication plant. Settled the matter for approximately 1/1000th of the amount demanded.
  
  
• Represented the architect of two large office buildings in which trial consumed three weeks. At the conclusion of trial, the court declared a non-suit as to our architect despite the plaintiff's expert being allowed to testify against the architect on standard of care issues.
  
  
• Represented major subcontractor in dispute with Caltrans over out of scope work on bridge project.
  
  
• Drafted and Negotiated AIA, AGC, DBIA and non-standard form contracts for various design professionals, contractors and owners
  
  
• Represented major steel manufacturer in federal court at trial and on appeal in multiple actions concerning upgrades to its basic oxygen furnace and obtained seven figure judgment upheld on appeal.
  
  
• Represented surety industry as amici in California Supreme Court case regarding application of pay-if paid clauses in contracts and effect on obligations of surety.
  
  
• Represented bank at trial of twelve year old dispute with adjacent landholder regarding development issues and claims in millions, and obtained favorable defense verdict in trial in San Diego Superior Court.
  
  
• Represented engineering companies in matters involving two different collapses of bridge structures.
  
  
• Represented California State University - Chico in litigation against a contractor and electrical subcontractor for extra work and delay.
  
  
• Represented California State University - San Francisco in Federal class action litigation involving allegations of campus wide ADA violations.
  
  
• Represented a private owner in the termination of a contractor for convenience on a $30 million private home in Monterey, California.
  
  
• Represented a private owner in a termination for default of a construction manager at risk on the construction of a school gym facility in Belmont, California.
  
  
• Represented an owner/financial institution in a termination for default and abandonment case in arbitration against a contractor.
  
  
• Representing contractor in claims before the U.S. Department of Interior Board of Contract Appeals pursuant to the Contracts Disputes Act.
  
  
• Represented environmental consulting firm in litigation with public entity over adequacy of an EIR/EIS.
  
  
• Obtained summary judgment for geotechnical firm in litigation by contractor relating to differing site conditions claim on San Francisco high rise residential tower.
  
  
• Represented engineering firm in litigation in Republic of Palau relating to bridge collapse.
  
  
• Represented environmental consultant/remediation contractor in dispute over cost overruns on Superfund landfill capping project in Vermont.
  
  
• Represented tile contractor in jury trial against Italian marble supplier resulting in a $900,000 verdict including punitive damages.
  
  
• Represented a major home developer which had repaired claims by homeowners in four subdivisions and recovered more than $12 million in indemnity payments over a two year period from the responsible trades.