Collateral Assignment of Contracts for $80M Project

We represented an architecture firm to negotiate an assignment of contracts related to an $80 million construction loan. This agreement, required by the lender, collaterally assigned the owner borrower’s rights in all project-related contracts to the lender as loan security. While helping the project owner meet its lender’s requirements, we defended our architect client from taking on undue liability exposures beyond its agreement with the owner. We achieved this by negotiating key provisions with the lender, including those addressing the architect’s continued performance in the event of borrower default and limitations on the lender’s ability to modify project plans and specifications.