Posts

Showing posts from July, 2015

Litigation-I Win, You Lose vs. Mediation-Win/Win

Image
  Litigation is a zero-sum game.  It destroys relationships and fosters enmity between the parties.  Parties rarely walk away happy.  Even if they win, the expense of litigation is enormous, and collecting on judgments is difficult. Disputes ultimately resolve, but the focus on winning at any cost can lead to prolonged legal battles.  Living with a lawsuit causes ongoing stress, which can distract you from your business and even have an effect on your health. In a courtroom, the final decision lies with a judge or jury who may not fully grasp the complexities of the case. Parties relinquish control over the outcome, potentially leaving them dissatisfied with the final judgment. Mediation has the opposite effect.   Rather than polarizing people, it enables the parties to attack the issues and not each other.     The process promotes open communication, collaboration and problem-solving, which enables parties to actively participate in crafting mutually beneficial solutions.   It res

Explaining Allowances in Contracts

Image
To contractors, allowances in contracts may be self-explanatory, but owners often find them confusing.  A typical section on allowances may look like this:              Cabinets                                    $10,000              Kitchen appliances                    $25,000              Bathroom fixtures                     $20,000 What contracts often don’t explain is, what happens when the full value isn’t used? If I only spend $8,000 on the cabinets, do I then get to allocate the $2000.00 to another category?  If not, why not? Who is responsible for buying the materials?  Will the checks be made out to the General Contractor? Is the General Contractor charging a mark-up on materials?  Will this include change order items? Contractors often find that owners will claim that they can find materials and supplies more cheaply on the internet.  It is the contractors’ job to explain to the owner that he has a relationship with his suppliers th