by Paula Moore
More owners of green projects, especially governments, are demanding long-term performance guarantees, and contractors and designers are trying to figure out how to defray the risks of such commitments. Among the biggest problems posed by guarantees for contractors is being held accountable for work they didn't do and the operation of delivered buildings they no longer control.
Most insurance companies don't cover guarantees, and attorneys often advise against making them out of concern for potential liability that could cost millions of dollars. Contractors don't like to pass on a job because of guarantee demands, especially in the current economy, but some think it could be costlier in the long run not to.
Reporter Paula Moore interviewed Polsinelli Shughart attorneys Roy Bash and Ryan Manies about these issues.
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About Roy Bash
Roy Bash is chair of the Construction/Energy/Real Estate Litigation practice group and has more than 35 years experience in the construction industry.
Mr. Bash is committed to leading his practice group to deliver value-oriented results to clients in the construction industry, whether at the beginning of project development or during a dispute-resolution process. He has significant experience in major litigation, helping to resolve disputes through negotiation, litigation or arbitration. He serves as an arbitrator and mediator in construction disputes.
Mr. Bash has represented the interests of numerous constituents in the construction industry with an emphasis on those entities providing general contracting, CM, EPC or design-build responsibilities. He also has extensive experience representing many architectural/engineering firms with design liability issues.
About Ryan Manies
Ryan Manies is an advisor to those who develop, design and construct. He brings to the Construction/Energy/Real Estate practice group over 14 years of experience in the construction industry. Prior to his legal career, Ryan graduated with a Bachelor of Architecture, obtained his license as an architect in the state of Kansas and worked for a mid-sized architectural firm located in Kansas City, Missouri.
Ryan is well versed in construction contract drafting and negotiations for contractors, designers, private owners and public entities utilizing The American Institute of Architects (AIA), ConsensusDOCS, and other construction industry standard form contracts. Ryan’s project experience is both international and widely varied including professional sports facilities, healthcare, energy, commercial, educational, religious and residential project types. Ryan has extensive experience in the preparation, review and analysis of numerous project agreements including teaming agreements, Memorandum of Understandings (MOU’s), prime contracts, subcontracts, Requests for Proposal and other front-end contract documents.
In construction disputes, Ryan has prepared and defended claims in numerous areas including defective workmanship, professional malpractice, architectural and engineering design issues, public bidding disputes, building code issues, performance and payment bond claims, contractor default, mechanic’s liens, differing site condition issues, delay claims and other construction and design disputes.