Law Commons^™

Greenbacks For Building Green: Does A Lender For Sustainable Construction Projects Need To Make Adjustments To Its Current Practices?, Darren Prum

Darren A. Prum

In the development of real property, the availability of money to secure construction resources becomes an important factor for success. The construction loan plays a central role in providing funds to erect a building on real property, but a lender faces numerous exposures that might result in a loss. In evaluating a project to determine its viability and to uncover any exposure it might present, a lender will conduct an extensive underwriting review process and will use mitigation techniques through the construction loan agreement and disbursement requirements to reduce the perceived risks to an acceptable business level, for those developments …

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 Liability: Considering The Applicable Standard Of Care & Strategies For Establishing A Different Level By Agreement, Darren Prum

Darren A. Prum

Recently, many in the construction industry appear to be adopting the standards and practices of green buildings on new and existing projects. With this shift to more sustainable approaches by the various participants and with the corresponding need for parties that specialize in these practices to fulfill an owner’s goals, the applicable standard of care for a given relationship when a problem occurs also may become an undetermined and overlooked risk for those involved in these types of projects. As such, the applicable standard of care for liability situations concerning green building construction will inevitably become an issue the courts …