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Practical Illinois Construction Law
Now Available
In-House

Illinois construction law contains numerous traps for the unwary. Simply put, construction law in Illinois is complicated, and common-sense solutions are sometimes wrong. This program explains and translates the laws that govern those involved in construction in Illinois into easily understandable practices and procedures. While the program is about the law, it is presented in practical, easy-to-understand terms without complexities, legal jargon or confusion.

Since this program’s inception 10 years ago, a large number of Illinois developers, owners, contractors, subcontractors, sureties, lenders, architects, facility and asset managers, consulting engineers, attorneys, and others, have attended. The Faculty‹composed of recognized experts from the Construction Group of the Chicago law offices of Schiff Hardin & Waite‹addresses the daily issues you face with clarity and precision. Assuring total practicality, member attorneys of the Group are also experienced as architects, engineers, and contractors.

Thoroughly up-to-date, the course focuses on topics vital to your construction operations:

  • Proving & defending construction claims
  • Avoiding disputes through team building and dispute review boards.
  • Understanding the major changes in the 1998 AIA documents, including warranties, damage limitations, intellectual property, design responsibility, design cost responsibility, and environmental hazards
  • The creation and enforcement of warranties
  • Achieving business goals by mediation or arbitration under the 1999 Construction Rules of the American Arbitration Association
  • Pitfalls of the unwary under the Americans With Disabilities Act and the Illinois Environmental Barriers Act
  • Effectively managing the Illinois Mechanics Lien Law
  • Understanding the impact of the most recent OSHA requirements
  • What your broker may not have told you about construction insurance
  • How to choose the right method of project delivery, including design-build and cost-plus contracts.

The program is specially tailored to your specific questions and concerns. Audience participation is an integral part of the program, and the presentations are flexible in order to respond to your most pressing interests. In addition to dynamic lectures and question-answering, each participant will receive a thoroughly updated Manual of reference materials to count on for guidance and desktop solutions long after the course has been completed.


The Course Curriculum
  1. THE FOUNDATION
    1. TYPES OF CONTRACTS
      1. Express Contracts
      2. Implied Contracts
      3. Quantum Meruit Or Quasi-Contract
    2. ELEMENTS OF A PROPER CONTRACT
      1. Offer
      2. Acceptance
      3. Mutual Consideration
      4. Timing Of Offer
      5. Acceptance & Revocation
      6. Promissory Estoppel
    3. DEFENSES TO AN OTHERWISE VALID CONTRACT
      1. Mutual Mistake Of Fact
      2. Illegality
      3. Statute Of Limitations/Repose
    4. CONTRACT INTERPRETATION
      1. Parol Evidence Rule
      2. Implied Terms
      3. Resolving Contradictions, Ambiguities & Inconsistencies
      4. Judicial Rules
      5. Incorporation By Reference
    5. AGENCY
      1. Agent vs. Independent Contractor
      2. Consequences To The Principal
      3. Types Of Authority

  2. CONTRACTS FOR PROFESSIONAL SERVICES
    1. STANDARD FORM CONTRACTS
      1. Advantages
      2. The Publishers
        1. AIA (American Inst. of Architects)
        2. NSPE
        3. EJCDC
        4. CMAA
        5. HUD
        6. IHDA
    2. THE AIA’s B141 CONTRACT FROM THE OWNER’S PERSPECTIVE
      1. Architect’s Services
        1. During each phase
        2. Additional services
        3. Effect of disclaimers
        4. Architect as performance judge
        5. Architect’s role during construction
      2. Owner’s Responsibilities
      3. Responsibility For Construction Cost
      4. Payment & Compensation
      5. Ownership Of Drawings
      6. Termination
    3. THE A-E’s AUTHORITY & RESPONSIBILITY
      1. Preparation Of Design & Construction Documents
      2. Relationship With Owner
        1. Contract vs. tort theories
        2. Express & implied duties
        3. Structuring compensation
      3. Tort Liability
        1. Negligence
        2. Negligent misrepresentation
        3. Fraud
        4. Strict liability
      4. Statutory Causes Of Action
      5. Specific Types Of Claims
      6. Limitation Of Liability
      7. Architect’s Liability For Preparing Plans & Specs
        1. Tort vs. contract & the economic loss rule
        2. Lack of privity as a defense
        3. Third party beneficiary theories
        4. Tort liability
        5. Liability to the public
        6. Ownership and use of drawings
      8. Roles During Construction
        1. Liability to owner
        2. Authority to represent owner
        3. Interpreting plans & specs
        4. Change Orders
        5. Rejecting work
        6. Means, methods & safety
        7. Reviewing pay application
        8. Certifying progress & completion
        9. Suspending/terminating the project
        10. Full time vs. part-time
        11. Other responsibilities
      9. A-E’s Resolution Of Owner/Contractor Disputes
      10. Fee Disputes

  3. CONTRACTS FOR CONSTRUCTION SERVICES
    1. PROJECT DELIVERY METHODS
      1. Traditional Tripartite Method
        1. Independent designer
        2. Separate contractor
      2. Construction Management
        1. Different types defined
        2. Value to project
        3. Appropriateness
      3. Design-Build
      4. EPC Projects (Engineering Procure-Construct)
      5. Fast-Track
      6. Lump Sum vs. Cost Plus
    2. PRICING VARIATIONS
      1. Fixed-Price Contracts
        1. Advantages & disadvantages
        2. Risk allocation
      2. Cost-Plus Pricing
        1. Calculation of fee
        2. Advantages & disadvantages
        3. Guaranteed maximum price
      3. Unit pricing
    3. GENERAL CONDITIONS OF CONSTRUCTION CONTRACTS
      1. Philosophy Of The Standard Form Agreements
      2. Special Clauses To Protect Owner Interests
        1. Indemnity
        2. Warranties
      3. Owner’s Rights & Duties
        1. Furnishing information
        2. Obtaining easements, access, etc.
        3. Stopping work/contract termination
      4. Contractor’s Rights
        1. Reviewing field conditions & plans
        2. Responsibility for construction
        3. Submitting samples & shop drawings
        4. Guarantees & indemnification
      5. Construction Time
      6. Completion & Payment
      7. Change Orders
      8. Correction Of Defective Work
      9. Termination Of The Contract
        1. By contractor
        2. By owner for cause
        3. By owner for convenience

  4. BIDDING & BONDS
    1. GOVERNMENT AS OWNER
      1. Public Projects
        1. State law
        2. Negotiated procurement
        3. Competitive bidding
        4. Special requirements
        5. Protesting bid awards
      2. Private Projects Compared
        1. Similarities to public projects
        2. Problems of missing elements
        3. Owner rejection of all bids
    2. MISTAKES IN BIDDING
      1. Unilateral Mistakes
      2. Mutual Mistakes
      3. Owner’s Rights & Obligations
    3. BID BONDS
      1. Reasons For Bond
      2. Types & Terms
      3. Liability & Defenses
    4. PAYMENT & PERFORMANCE BONDS
      1. Standard Bond Forms
      2. Scope Of Coverage
      3. Who Recovers & How
      4. Defenses To Liability

  5. PERFORMING THE PROJECT
    1. CONTRACTOR’S PERFORMANCE OBLIGATIONS
      1. Interpreting Plans & Specifications
      2. Measure Of Required Performance
      3. Substantial Completion
      4. Contractor’s Warranties
        1. Implied
        2. Express
        3. Duration
        4. Owner’s acceptance & waiver
        5. Damages for breach
    2. CHANGES IN THE WORK
      1. Typical Changes Clauses
      2. Owner’s Rights & Obligations
      3. Contractor’s Rights & Obligations
      4. Allowable Scope Of Changes
        1. Within scope of contract
        2. Cardinal changes
        3. Deductive change vs. convenience termination
      5. Authority To Make Changes
        1. Actual vs. apparent
        2. Contractor’s duty to inquire
      6. Formal Or Acknowledged Changes
        1. Unilateral vs. bilateral
        2. Notice requirements & exceptions
        3. Claims for impact effects
      7. Constructive Changes
        1. Action By Owner Still Required
        2. Notice requirements & exceptions
        3. Specific situations
    3. SUBCONTRACTING & VENDORS
      1. Owner’s Involvement In Subcontracting
      2. Owner’s Rights vs. Subcontractors
      3. Subcontractors’ Rights vs. Owner
    4. DIFFERING SITE CONDITIONS (DSC)
      1. Including vs. Excluding DSC Clause
      2. Rules If No Clause Exists
      3. Typical DSC Clauses-Public & Private
      4. General Requirements For Recovery
      5. Recovery For Type I Conditions
      6. Recovery for Type II Conditions

  6. CLAIMS & PROBLEM AREAS
    1. SPECIAL ILLINOIS LAWS AFFECTING CONSTRUCTION
      1. Statutes Of Limitations/Repose
      2. Anti-Indemnity Act
      3. Contribution
      4. Structural Work Act
    2. CLAIMS PREPARATION
      1. Sources Of Information
      2. Practical Considerations
      3. Documentation Systems
      4. Use Of Experts & Attorneys
    3. NEGOTIATING SETTLEMENTS
      1. Why Negotiate?
      2. How To Prepare
      3. The Negotiating Team
      4. Analyzing The Opposition
      5. Negotiation Techniques
      6. Memorandum Of Agreement
    4. PARTNERING & TEAMBUILDING
      1. Selecting A Facilitator
      2. Structuring The Retreat
      3. Partnering Agreements
    5. MEDIATION
      1. When appropriate
      2. Process design
      3. Selection of mediators
    6. DISPUTE REVIEW BOARDS
      1. When appropriate
      2. Selection of members
    7. ARBITRATING DISPUTES
      1. General Principles & Applications
      2. Arbitration vs. Litigation
      3. Types Of Arbitration Clauses
      4. Procedure & Rules
    8. RELIEF IN THE COURTS
      1. Federal vs. State Courts
      2. Administrative Remedies
      3. Successful Litigation Techniques
      4. Formulating The Game Plan
      5. Discover
      6. Judge vs. Jury Trial
      7. Choosing Counsel
      8. Whom To Sue
      9. Use Of Experts
      10. The Trial
      11. Appeals
      12. The “Cost” Of Litigation
    9. CONSTRUCTION DELAY CLAIMS
      1. Milestone Dates
        1. Beginning of contract time
        2. Substantial completion
        3. Final completion
        4. Effect of change orders
      2. Acceleration
        1. Consequences
        2. Responsibility
        3. Offering owner the option
      3. Early Completion
      4. Responsibility For Delay
        1. Contractor’s responsibility
        2. Force majeure
        3. Owner-caused delays
      5. Scheduling
        1. Bar charts & traditional scheduling
        2. CPM scheduling
      6. Delay Damages
        1. Consequential damages
        2. Liquidated damages
        3. Contractor's damages
    10. MECHANICS’ LIEN CLAIMS
      1. Definitions
      2. Parties
      3. What Improvements Are Lienable?
      4. What Property Is Lienable?
      5. Contractor’s Pre-lien Requirements
      6. Subcontractor’s Pre-lien Requirements
      7. Lien Requirements
      8. Lawsuits To Foreclose On Liens
      9. Public Projects
      10. Lien Waivers
      11. Defenses to Mechanics’ Liens
    11. CONTRACTOR’S DEFAULT
      1. When The Contractor Walks Off The Job
      2. Terminating The Contract
      3. Coping With Insolvency
      4. Notice To The Surety
    12. INSURANCE
      1. Understanding Risk Management
      2. Insurance Policies
        1. Property
        2. General liability
        3. Workers’ compensation
        4. Professional liability
        5. Builder’s risk
        6. Umbrella
      3. Self-Insurance
    13. AMERICANS WITH DISABILITIES ACT
      1. What Owners Need To Know
      2. The Illinois Environmental Barriers Act