Summary: Our construction law team successfully guided a regional healthcare provider through complex contract negotiations with a national construction company for a new hospital project, protecting our client's interests in a major capital investment.
The Challenge Our healthcare client needed to construct a new hospital facility with construction costs totaling approximately $50 million. The project required negotiating with a national construction company while ensuring comprehensive protection for our client. The complexity of healthcare construction demanded careful attention to specialized requirements, risk allocation, and cost controls that would impact our client for years to come.
Our Strategy We committed to an intensive, nearly year-long negotiation process, working methodically through every aspect of the construction agreement. Our approach involved comprehensive revisions to standard AIA contract terms, addressing critical areas including insurance requirements, change order procedures, detailed scope of work definitions, and Guaranteed Maximum Price (GMP) protections. We prioritized our client's operational needs while ensuring appropriate risk transfer to the contractor.
The Result Through persistent advocacy and careful contract crafting, we delivered a comprehensive construction agreement that served our client's interests. We secured favorable contract terms that protected the healthcare provider's substantial investment while establishing comprehensive risk allocation that shifted appropriate liability to the national contractor. Our detailed change order protections prevented potential cost overruns and scope creep on this $50 million project.
Our thorough approach to contract negotiation provided our client with the legal framework needed to move forward confidently with this critical healthcare infrastructure project.
