Zeidel & Associates Revamps Construction Vendor Contracts for Global Company

January 22, 2024 Case Studies

Situation

Zeidel & Associates represents one of the largest global career support and job search companies with more than 10,000 employees worldwide. It was expanding its extensive portfolio of leased office space, which it renovates in accordance with its own unique specifications under the supervision of a team of expert, in-house renovation specialists and project managers. However, the company did not have a consistent approach to the legal documentation of these extensive design and construction projects. Hence, Zeidel & Associates was asked to develop and implement one based on best practices we developed over many years of working in the construction sector.

Approach

Zeidel & Associates conducted a contracts audit and determined that the agreements our client was using for its renovation projects did not provide sufficient legal protection. The firm then created a new set of contracts, specifically tailored to our client’s need, to be used for architecture and design, construction and construction management, project management, feasibility, and agreements with other consultants. We solicitated input from our client’s internal project managers, lawyers and insurance team in order to identify and address deficiencies and problems on past projects. The firm then advised our client on how to manage its design and consulting vendors to achieve the widest acceptance of the new form contracts.

As new renovation projects arose, Zeidel & Associates implemented the new contract forms by partnering with our client’s internal teams and negotiating with outside vendors. Further, our extensive leasing experience armed us with the understanding of how to ensure that the design and construction agreements were aligned with the requirements of the renovation dictated in the individual leases.

When the pandemic unexpectedly struck, the firm shifted its focus from handling new projects to managing active ones, as offices closed, and employees transitioned to a remote work environment. Projects were in danger of falling behind or being shut down by executive orders and shelter-in-place ordinances. Zeidel & Associates conducted an in-depth analysis to understand how the contracts would address the effects of the pandemic to help our client respond to governmental action and claims from general contractors and other professionals for more time and/or fees to complete projects, and otherwise mitigate its potential liability. The firm also analyzed the complex and evolving legal landscape of pandemic-related executive orders and associated restrictions, which determined which construction projects could proceed (due to their “essential” nature, “critical infrastructure” or otherwise), and which could not, as determined on a jurisdiction-by-jurisdiction basis. The firm also modified its forms to address the rights and obligations of the parties more directly as they relate to the pandemic.

Result

To date, Zeidel & Associates has implemented its design and construction forms at more than 15 leased locations throughout the United States. We recently shifted our efforts again, this time to support our client’s efforts to reopen its offices and resume construction projects, by hiring designers and contractors to design and implement social-distancing modifications and other necessary changes within its office space across the country.