We regularly help clients navigate design and construction challenges on manufacturing projects where the stakes are high and the costs are higher.
Resolving Disputes on Large-Scale Expansions
We were hired by a Fortune 500 manufacturer undertaking a $100 million engineer, procure, and construct (EPC) project to expand its physical plant. The contractor – approaching its guaranteed maximum price (GMP) limit with months of work remaining – sought a $14 million increase due to cost escalation, claiming post-pandemic supply chain disruption as the cause. Others suspected poor estimating and evolving design. Daily site presence of hundreds of workers and looming liquidated damages left little room for delays, and the contractor risked being unable to invoice if it formally hit the GMP ceiling. We were brought in to analyze short- and long-term “win-win” options, help preserve progress, and prepare for potential formal dispute resolution. Jeremy directly advised the company’s President & CEO and General Counsel, including through strategy sessions with forensic accountants and other experts. Work continued and a resolution was reached without project shutdown or litigation.
Securing Payment and Preserving Relationships
We also represented a design-build firm on a $35 million car manufacturing facility project involving a $6.8 million payment dispute and cybersecurity theft. The project was nearly complete, but nonpayment jeopardized our client’s relationships with key subconsultants. We helped secure our client’s interests by recording a mechanics lien claim and pursuing multiple remedies, including litigation and mediation. The project was completed, the system passed owner testing, and our client received payment while preserving key relationships for future work.
Negotiating Owner-Architect Agreements
In addition, we have negotiated Owner-Architect Agreements for major manufacturing projects. For example, we represented an architecture firm in a $15 million interior and base building improvement project for a global capital goods manufacturer’s North American headquarters. We also negotiated an AIA Document B104–2017, Abbreviated Form of Agreement Between Owner and Architect, for an $11 million manufacturing facility and office project involving over 50,000 square feet and multiple consultants. And in a smaller but still sophisticated engagement, we negotiated an AIA Document B101-2017, Agreement Between Owner and Architect for a 9,500 square foot, two-phase wine laboratory and warehouse interior build-out.
Trusted Counsel for the Manufacturing Sector
Whether dealing with fast-moving disputes or preventive negotiations, our work in the manufacturing sector shows our ability to help clients manage risk, maintain relationships, and resolve problems efficiently – even under extraordinary pressure.
Looking for experienced legal counsel to guide your next manufacturing project? Contact our team today to get started.
