Stakeholders in complex construction projects tend to use words and phrases like “partnering,” “proactive,” “flexibility,” “no punch list,” “early completion,” and “under budget” early in the project. Then comes the inevitable roadblock threatening to squash the optimism. Fearing that the relationship will sour, contractors often elect not to follow the formal notice requirements in the contract and try to work around the problem or talk through the issue with the owner. Unresolved issues often snowball into costly litigation at the end of the project – contravening the reason the contractor elected not to follow the formal notice requirements in the first place. The answer to the question “Who pays?” often depends on the jurisdiction and whether the owner is a private or public entity. Read more