{"id":24260,"date":"2023-08-01T00:00:20","date_gmt":"2023-08-01T00:00:20","guid":{"rendered":"https:\/\/todaysveterinarybusiness.com\/?p=24260"},"modified":"2023-07-25T22:33:42","modified_gmt":"2023-07-25T22:33:42","slug":"construction-legal-lingo-0823","status":"publish","type":"post","link":"https:\/\/navc.sitepreview.app\/todaysveterinarybusiness.com\/construction-legal-lingo-0823\/","title":{"rendered":"Building a Case for Construction Counsel"},"content":{"rendered":"

Our firm represented a veterinary clinic owner ensnarled in a dispute over construction contracts. A solo practitioner with a well-established but relatively small practice, he was determined to build a brand-new hospital. He contacted a reputable, sophisticated contractor that held itself out as experienced in such specialized construction. The builder developed a three-part program, with contracts governing each project phase. The owner told the builder his budget was $4 million, signed the contracts and invested over $100,000 in preliminary budget discussions and design concepts.<\/p>\n

At first, our client was pleased with the detail in the builder\u2019s proposal. Indeed, the plan calculated the entire economics of the project, from the practice\u2019s projected income from office visits, product sales and grooming, for example, to an analysis of the cost of bank loans, employee salaries and benefits.<\/p>\n

Back to Square One<\/strong><\/h3>\n

Ultimately, the builder told our client he needed to spend $5 million to get what he wanted. When the practice owner reiterated his $4 million limit, the builder responded that only a lesser building was possible. Not wanting to go over budget by $1\u2006million and feeling duped by the contractor, the owner terminated the contracts and had to start over.<\/p>\n

The good news is our client went with another contractor, achieved the hospital he wanted and maintained his $4 million budget. The bad news is the owner spent $100,000 with the original builder and walked away with nothing in exchange. He contacted our firm and asked why he couldn\u2019t at least obtain the design drawings.<\/p>\n

Do-It-Yourself Dangers<\/strong><\/h3>\n

Unfortunately, the damage was done. The practice owner signed the contracts without an attorney\u2019s review. Had he done so, his construction counsel would have pointed out that the design contract contained language making the drawings the builder\u2019s intellectual property.<\/p>\n

A construction lawyer also could have negotiated the terms to ensure the builder was obligated to design a hospital within the owner\u2019s budget or return the initial deposits. Also, the owner would have known that the first $100,000 was for design concepts, not drawings, and that he would forfeit the money if the contractor weren\u2019t the builder.<\/p>\n

Lawyerly Benefits<\/strong><\/h3>\n

When counsel is retained to represent a client in the negotiation and development of a construction contract, the lawyer will point out all the language that could:<\/p>\n