Construction contracts in Philadelphia decreased from last year
According to a recent article in the Philadelphia Business Journal, the number of construction contracts in the Philadelphia area fell in July compared to the same period last year, even though year-to-date construction activity is at roughly the same level.
The number of nonresidential building contracts-which include commercial, manufacturing, educational, religious, and hotels-for July decreased by 42 percent to $146.9 million and residential construction contracts-which include single family homes and apartments-fell to $68 million, by 39 percent. So far this year, spending on both residential and nonresidential construction contracts has increased 6 percent, going from $2.3 billion from 2.2 billion.
Overall, building in Philadelphia decreased by 41 percent, going from $368.4 million to $215.6 million. Likewise, total construction activity in Philadelphia decreased in 2012, going from $1.2 billion last July to $855 million. So far this year, construction contracts across the state have increased to $7.4 billion from $7 billion.
For businesses, it is important to realize that a number of issues can arise with respect to construction contracts. Among these are: allocation of risk; indemnity; insurance; contractor and subcontractor issues; certificates of insurance, and waivers of subrogation.
Many of these issues can be difficult to navigate, and it can be helpful to have an attorney review the contract before signing. Because each construction project actually includes multiple contracts, there should be consistency between them. In addition, having an attorney around can be very helpful during the negotiation process. Overall, an attorney is crucial to managing the risks that go along with entering into construction contracts.
Source: Bizjournals.com, “Philadelphia construction contracts down compared to this time last year,” Natalie Kostelni, August 30, 2012