Spencer Fane attorney A.J. Ferate recently published an article in Law360 covering best practices for contractors faced with a dispute related to a construction project.
Titled “Rover Pipeline Case Shows Risks Of Project Abandonment,” the article discusses the different options contractors have when responding to a project dispute, noting that the contract and relevant statutory and common law has significant impact on next steps.
“In most instances, the course of action that carries the highest risk is choosing to stop performance on the project or abandoning the work,” A.J. explained in the article. “While in some circumstances the threat of walking off a project can create a moment of leverage in negotiating with an owner…[m]any construction industry professionals and attorneys agree that a contractor should only take such action following a comprehensive legal and business evaluation of all options and potential risks.”
A.J. also analyzed U.S. Pipeline Inc. v. Rover Pipeline LLC, highlighting the high risk that occurred – terminating an incomplete project.
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