USA – IOWA Law and Practice Contributed by: David M. Erickson, Christopher S. Talcott, Amy S. Montgomery and Shannon M.H. Hasse, Dentons Davis Brown PC
6.23 Remedies/Damages for Breach The Iowa Uniform Residential Landlord and Tenant Act imposes limitations on the nature of damages that a landlord may claim, gener - ally limiting recovery to actual damages and also subject to the landlord’s duty to mitigate damages. Recovery of damages in the commer - cial leasing context is generally consistent with contract law principles, subject to the landlord’s duty to mitigate damages. Security deposits in residential leases are tightly regulated by stat - ute, whereas in the commercial context are only limited by agreement of the parties. Commercial leases are frequently secured by security depos - its, which may be commingled with a landlord’s personal funds, and by personal guaranties. 7. Construction 7.1 Common Structures Used to Price Construction Projects Myriad types of construction contracts are used in Iowa. However, the most prevalent types of construction agreements in the residential con - struction context are generally the cost-plus agreement, with or without a guaranteed maxi - mum price, the time and materials agreement and the stipulated sum agreement (as well as combinations thereof). 7.2 Assigning Responsibility for the Design and Construction of a Project The most common project delivery methods are as follows. Design-Bid-Build/Traditional Method The owner contracts separately with a design professional, who handles all design responsi - bilities, and a general contractor, who handles all construction responsibilities.
Design-Build Method The owner hires a single entity, termed the design-builder, to perform both design and con - struction responsibilities under a single contract with the owner. Construction Management Methods The owner separately contracts with a design professional to develop the design of the project and with a construction manager. The construction manager as adviser (CMa) method The construction manager contracts with an owner to act as its consultant/adviser in the pre-construction/design phases and to provide construction management services during the construction phases. Under this method, the owner holds the subcontracts and assumes the risk of delivery of the project regarding cost and schedule. The construction manager at risk (CMAR) method The construction manager contracts with an owner to act as its consultant in the pre-con - struction/design phases, to generally provide for the actual construction of the project ordinar - ily through use of a general contractor, and to otherwise perform construction management services. Importantly, under this method, the construction manager guarantees the cost of the work such that the construction manager assumes the risk with the owner of exceeding such cost. The cost of the work is generally cost- plus with a guaranteed maximum price, but can also be a stipulated sum price. 7.3 Management of Construction Risk The primary method for management and allo - cation of risk as between contractor and owner is through warranties and indemnifications pro -
1177 CHAMBERS.COM
Powered by FlippingBook