Law Commons^™

The Bonds That Tie: Will A Performance Bond Require That A Surety Deliver A Certified Green Building?, Darren Prum, Lorilee Medders

Darren A. Prum

In 2006, the city of Washington, D. C. passed landmark legislation that introduced green building requirements for various types of structures into the jurisdiction over a five-year period. A noteworthy aspect of the legislation directed construction projects within the district to purchase green performance bonds up to $3 million to guard against a privately owned project’s failure to meet its green building aspirations. In essence, this law placed the burden of guaranteeing compliance with the government’s policy upon the contractors and sureties of a green building project.

Following the passage of this act, confusion amongst the construction industry and sureties …

Green Building Contracts: Considering The Roles Of Consequential Damages & Limitation Of Liability Provisions, Darren Prum, Stephen Del Percio

Darren A. Prum

The green building market continues to grow, but so do the corresponding legal risks which are only now being explored by scholars and practitioners. Lurking in the shadows behind any green building risk management strategy is how consequential damages - damages which may flow from a party's breach of a design, construction, or consulting contract - should be allocated among project stakeholders. This allocation is particularly critical on green building projects, whose unique and novel nature can create an increased potential for consequential damages. For example, green building tax credits, premium rents, and even energy savings might fall within the …