Industry Priorities

ConsensusDocs is about to publish an updated standard ConsensusDocs 235 Owner/Constructor Standard Agreement. The ConsensusDocs 235 provides a short form standard prime contract. Construction work payment is based upon cost-of-the-work plus a fee. This type of “cost/plus” contract increased in popularity amid the post-pandemic breakout price uncertainty that led to price escalation and supply chain disruptions that were highlighted in this article. The ConsensusDocs 235 cost/plus agreement does not include a guaranteed maximum price (GMP) (as compared to the ConsensusDocs 230). The ConsensusDocs 235 is a great choice for projects that want greater collaboration and transparency by avoiding the potential hard edge of a GMP.

Progressive Design Build (PDB) differs from traditional design-build and has grown in popularity, especially for bigger projects. PDB allows an Owner to quickly select a design-builder based upon qualifications or best value. Design plans progress to completion after award selection. Consequently, the cost for design-builders to compete is significantly less. The project price is fixed when more uncertainties become known. Also, predetermined contractual off-ramps potentially allow the parties to exit the project. This webinar will help you decide if PDB helps balance risk, increase transparency, and reduce budget busts.

ConsensusDocs publishes a monthly construction law newsletter that you can sign up for free at the bottom of this page here. ConsensusDocs compiles the top five most-read articles of the year in January as an interesting way to reflect on the previous year as well as indicate some of the trending topics that lie ahead. For 2023, the most-read articles were:

A takeaway from this year’s Construction Superconference was a growing apprehension regarding the risk associated with design-build projects, especially for large mega projects. In four key sessions, concerns surfaced about the project delivery method’s efficacy in fairly allocating risk. Concerns about risk in design-build have previously been reported in ENR. The debate continues over how to share risk and reward among all the parties to the construction process. Amidst these concerns, progressive design-build emerged as a promising variation to the traditional design-build approach. Progressive design-build emphasizes a qualifications-based selection to expedite decision-making and reduce costs. This article explores the pivotal discussions at the Construction Superconference, revealing the industry's quest for a more balanced and efficient approach to risk allocation in design-build projects.

Together, AGC of America and its Illinois Chapters have achieved a major breakthrough as to commercial general liability insurance (CGL) coverage for construction defects under Illinois law. The Illinois Supreme Court issued its opinion in Acuity v. M/I Homes of Chicago, LLC, Docket No. 129087 on Nov. 30, 2023. The case involved CGL coverage for construction defects resulting in water damage to a townhome project. In that context, the Supreme Court clarified the law to agree with many state supreme courts that such property damage is an “occurrence” in Illinois. The Supreme Court’s clarification is extremely favorable to the construction industry and was supported by an amici curiae brief sponsored by AGC of America, National Association of Home Builders, American Subcontractors Association and local chapters in Illinois.

ConsensusDocs recently introduced noteworthy updates to its most used prime and subcontract agreements, detailed here. In this article, we’ll take a closer look at the revisions made to the short forms, which are more frequently used than the long forms. These streamlined documents, particularly the ConsensusDocs 205 Agreement Between Owner and Constructor & General Conditions (Short Form), have undergone strategic changes to enhance clarity and efficiency while maintaining the integrity of essential terms and conditions.

State construction laws and case law interpreting those laws dramatically impact your contract and, thereby, your risk profile on a project. Before you sign or bid on your next construction contract, it is wise to have a system to navigate these laws. ConsensusDocs is presenting a webinar on November 9th (Register here), providing a systematic approach to navigating critical construction laws and the latest trends. Specific laws covered will include hot-button state construction laws, such as pay-if-paid, indemnification, prompt pay, and notice requirements.

Is short too short? This article tries to answer that question for construction contracts by delving into the major differences between short-form agreements and regular standard ConsensusDocs contracts.

Introducing "AGC's Construction Risk Insights," a valuable resource dedicated to enhancing risk management practices and optimizing project success within the construction industry. Check out Issue #1 here. We're thrilled to unveil this newsletter, designed exclusively for the AGC community. Delve into a wealth of AGC-focused content encompassing critical areas such as construction contracts, insurance, bonding, safety, labor, environment, finance, technology, and beyond. Join our growing community of industry leaders - subscribe online at and elevate your risk management expertise with AGC.