Modular Construction Contracts: Integrating Components and Deliveries, Delays, Lien Challenges, and Risk of Loss

A live 90-minute CLE video webinar with interactive Q&A

This program is included with the Strafford CLE Pass. Click for more information.
This program is included with the Strafford All-Access Pass. Click for more information.

Wednesday, February 23, 2022

1:00pm-2:30pm EST, 10:00am-11:30am PST

Early Registration Discount Deadline, Friday, January 28, 2022

or call 1-800-926-7926

This CLE webinar will advise construction counsel of the legal issues in the emerging trend of modular construction. The panel will address best practices for handling disputes when separately engineered components fail to integrate and coordinate projects and delivery to eliminate delays. The panel will address how lien laws affect prefabricated construction and the risk of loss issues during the transport of components.

Description

There is a risk of losing a major subcontractor during a project in traditional construction, but a qualified replacement is typically available to hire to complete the project. If a prefab construction project loses the contractor building its modules, fewer replacement prefabricators are available to finish the work.

Counsel should consider how to draft agreements that address the scheduling and coordination of the project. Accordingly, relevant contracts need to determine whether and how an installer may recover losses incurred from interference. Because bringing prefabricated components to a job site can, and often does, involve interstate transport, prefabricators should have insurance coverage that applies in all applicable states. Otherwise, coverage may not be available. All involved parties should ensure that the relevant agreements contain the necessary insurance requirements to provide the proper coverage.

While most states' lien laws allow a general contractor, subcontractor, or supplier to file a lien on unpaid furnished and completed construction work, there are questions regarding the legality of liens on prefabricated components. The components themselves are completed and, as unique work, furnished to the project in that the manufacturer cannot resell them to another buyer; therefore, lien rights should exist. On the other hand, component parts involve no more labor and materials than a supply of building products, both of which could be returned to the supplier making a lien inapplicable.

Listen as our expert panel discusses some of the major issues to consider when entering prefab construction contracts. The panel will address the need to coordinate with design and construction professionals with experience in prefab construction to determine whether it is a good fit for the project.

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Outline

  1. Modular and prefabricated construction agreements
    1. Insurance requirements
    2. Lien rights
    3. Risk of loss
  2. Best practices

Benefits

The panel will address these and other key issues:

  • How can counsel coordinate scheduling and delivery of components to prefabricated construction projects?
  • What insurance should modular construction projects require?
  • When do suppliers of prefabricated components have lien rights?

Faculty

Hedberg, Frederick
Frederick E. Hedberg

Partner
Robinson & Cole

Mr. Hedberg is a member of the firm’s Construction Law Group, with more than 20 years of experience handling...  |  Read More

Pasakarnis, Seth
Seth M. Pasakarnis

Partner
Hinckley Allen & Snyder

Mr. Pasakarnis’ practice is focused on all aspects of the construction industry. He has represented a wide range...  |  Read More

Schwartz, Michael
Michael I. Schwartz

Attorney
Cohen Seglias Pallas Greenhall & Furman

Mr. Schwartz’ practice focuses on construction litigation. He represents contractors, subcontractors, design...  |  Read More

Attend on February 23

Early Discount (through 01/28/22)

Cannot Attend February 23?

Early Discount (through 01/28/22)

You may pre-order a recording to listen at your convenience. Recordings are available 48 hours after the webinar. Strafford will process CLE credit for one person on each recording. All formats include course handouts.

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