b'The Lingering Effects of COVID Team News in ConstructionKelsey M. Scanlan Has Joined Our TeamKelseys practice focuses on estate planning and probate and trustKelsey M. Scanlanadministration. She represents individuals and families in a variety of matters, from the preparation of estate planning documents to the612-877-5320administration of estate and trust matters. Kelsey counsels clients in theKelsey.Scanlan@lawmoss.comareas of wills, trusts, powers of attorney, health care directives, and otherWealth Preservation and estate planning documents; probate and trust administration; tax reductionEstate Planningplanning; and business succession and exit planning. She received her J.D., magna cum laude, from William Mitchell College of Law and her B.A. from the University of Minnesota-Twin Cities.Even though vaccinations against COVID are rising, theWhat is the form of your contract? Is it fixed-price Moss & Barnett Client: Impacks construction industry is still feeling the aftershocks of theor cost-plus?pandemic. Supply chains continue to be disrupted nationwide. Brandon and Clare Richards Many manufacturers and suppliers had to curtail or even stopDoes the contract impose deadlines? production, but construction activity continued throughout theUnder what circumstances can those deadlines Moss & Barnett is pleased to serve as legal counsel to Brandon andthe national average cost, while also giving families a meaningfulpandemic. That caused depletion of inventory and instancesbe changed?Clare Richards, founders of a rapidly growing Minnesota startup,and convenient way to donate to their school. In addition towhere demand exceeds supply. Clients are now reporting Impacks. Impacks was founded to address the lack of access manydonations from families, Impacks also matches a portion oflong lead times for materials that are usually readily available.What are the penalties if deadlines are missed? children have to critical school supplies, with a mission to create aevery donation. They have also established a partnership withWhen materials are available, they are often much more expensiveLiquidated damages or actual damages? world where every student has all of the supplies he or she needsthe Central MN Educational Research & Development Council,than usual. Is there a no damages for delay clause?to succeed. The Impacks platform provides a simple, convenientand were recently accepted into a nationally ranked and highlyThis causes problems at all levels of construction and exacerbates way for families to purchase their school supplies online, whilecompetitive accelerator program, gBETA. Is there a limitation on consequential damages? also partnering with schools to help them fundraise. Impacksthe tensions that already exist in the industry. Owners do not offers customized, prepackaged school supply kits at less than halfLearn more about Impacks: myimpacks.com. make money during construction; they make money fromIs there a cost escalation provision? completed projects that they can use, rent, or sell. Owners want their projects completed as quickly and as inexpensively asIs there a force majeure clause and does it apply?possible. Contractors and subcontractors do make money duringThis list is by no means exhaustive, but it shows that several construction, but, like retailers, they make money by maximizingdifferent provisions in a single contract have to play together the difference between their cost for labor and materials and theto achieve the desired allocation of risk between the parties to price they charge. Price escalation in materials cuts into margins.the contract. And having workers sitting idle on a jobsite waiting for materials is the antithesis of labor productivity. But the problem often is even more complex than that. The contractual risk allocations need to be consistent for all of the The contracts between the owner, the contractor, thecontracts affecting a party on a project. For example, a general subcontractors, and the suppliers all determine who will ultimatelycontractor on a construction project will typically have a contract bear the cost of a problem on a construction contract. Here arewith the owner and separate contracts with one or more a few things to consider if you are negotiating a new contractsubcontractors and suppliers. If the contract with the owner is or are trying to resolve a problem on an existing project that hasfixed price and does not allow for cost escalation adjustments, the Brandon and Clare Richardsbeen impacted by supply chain issues:Founders, Impacks "Covid in Construction" Continued on Page 7# 54'