Brian Belt, a real property attorney in Gunster’s Miami office, recently wrote an article about the intricacies of construction contracts for large, mixed-use projects involving hotels. It was published in Hotels magazine on Nov. 9, 2015.

Numerous detailed considerations are required when putting together construction contracts on such projects, Belt says in the article. Planning, discussions, coordination and cooperation are required of a variety of stakeholders, complicating the matter exponentially.

According to Belt, the unique, all-encompassing nature of such projects mean there are often a slew of variables that will need to be accommodated in the contract, such as:

  • phased completion – project timing and disclosures/warranties for potential interference (e.g., noise, security, debris)
  • land use/zoning entitlements – a wide variety of governmental-imposed requirements must be met
  • hotel involvement – this can affect which vendors may be used
  • multiple lenders – who will control the project in the event of a default?
  • contractor personnel – on-site personnel should be named, along with their responsibilities

Failure to use careful consideration when drafting construction contracts for hotel mixed-use projects may result in unwelcome changes in the construction schedule and costs, as well as potential liability exposure for project stakeholders, Belt says in the article.

Belt practices in the areas of real estate, hospitality and corporate law. He has represented owners, lenders and developers of real estate, condominium, marina and hospitality projects throughout the country and internationally. His experience includes acquisition and sales, due diligence, restructuring, land use, leasing, construction and financing. He has extensive experience in acquiring, structuring, developing, financing and restructuring complex mixed-use projects and mixed-use hospitality projects.

Read the Hotels magazine article online (subscription req’d): Mixed-use construction projects can’t be drafted in a vacuum (11/19/15)



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