CREJ - Journal

March 18-March 31, 2015 —

COLORADO REAL ESTATE JOURNAL

— Page 41

ing and a forum for failure. In

one situation, our client, a small

subcontractor on a major pro-

gram, was given flow-down

terms and conditions from the

large prime contractor. We were

requested to review these flow-

down clauses and comment on

the applicability of the require-

ments. Although the subcontrac-

tor was on the prime’s proposal

team, the prime flowed down

more than 115 contract provi-

sions. Upon review, we found

only a limited number of clauses

that were mandatory due to the

unique status of dealing with the

government and 14 clauses that

would be acceptable if appro-

priately modified to support

the prime contractor’s responsi-

bilities to the government. The

rest of the clauses did not apply

or were just not appropriate.

Always review the clauses and

negotiate the final contract as

much as possible. Balance your

review by recognizing accept-

able risks, managing those risks

and keeping in mind your goals

in acquiring and performing the

contract.

What are some important

considerations when estab-

lishing the prime-subcontrac-

tor relationship?

A company’s

approach to entering the realm

of government contracts should

include various relationships

with prime contractors. Those

contractual relationships could

include not only the traditional

subcontract but also teaming

arrangements, joint ventures

and mentor-protégé programs.

Be thorough and proactive in

the development of such rela-

tionships. Ensure that there is an

understanding in terms of the

focus and goals to be achieved

and the responsibilities assigned

to each party. Understand bill-

ing, risk allocation, intellectual

property issues, marketing and

quality issues between the con-

tract parties. Most importantly,

clearly identify the roles and

goals of the parties. Finally,

understand and limit the terms

and conditions necessary to suc-

cessfully perform the contract.

How should the contractor

handle a dispute with the gov-

ernment or prime over con-

tract award or performance?

There are different approaches

to resolving disputes with the

government or prime over a con-

tract award or performance. In

my opinion, it is most important

not to be arbitrary and to under-

stand that there is a certain cost

to performing any business obli-

gation. Management must bal-

ance the rights supplied under

the contract with the importance

of the company’s relationship

with its customer. Generally,

my experience has been that

the government understands

that parties to a contract may

have a dispute – there is no

perfect contract. While there are

no guarantees, most govern-

ment officials understand that

it is “just business” as long as

the issues are presented in a

businesslike approach. A pro-

fessional approach goes a long

way toward resolving issues

and maintaining a high past-

performance rating.

Whatever the level of the dis-

pute, the contractor must ensure

that the claim is drafted well and

fully supported. While there are

times that demand a more for-

mal resolution technique, I am a

firm believer in trying to resolve

issues through unassisted nego-

tiation or formal mediation.

There are a number of govern-

ment directives that encourage

alternative dispute resolutions

between parties; take advantage

of those directives as much as

possible, it’s just good customer

relations.

Law Continued from Page 32

Depot Square Apartments,

which is part of a transit-

oriented project between

Pedersen Development Co.,

the Regional Transportation

District and the city of Boul-

der.

The Depot Square Apart-

ments, located at 3195 Pearl

Parkway, comprises 71 per-

manently affordable one-

and two-bedroom apart-

ment homes. An adjacent

parking garage has avail-

able parking for each apart-

ment home. The planned

community also will feature

covered bicycle parking,

laundry facilities on every

floor, large storage units and

controlled access.

The apartments are antici-

pated to achieve a LEED

Gold certification. The util-

ity cost savings for residents

of the sustainable build-

ing combined with free eco

passes for every member

of the household (free RTD

transportation) adds more

value for low- to moderate-

income Boulder households.

The availability is limit-

ed and income restrictions

apply.

PM News Continued from Page 34

pants to transfer their subscrip-

tion to a new meter within the

same county, utility territory

or a specified number of miles.

Solar panels also may be sold

or donated if a customer moves

from a partner utility’s service

area.

National energy services firm

McKinstry incorporated com-

munity solar into its energy

management solutions, recent-

ly working with Denver’s

South Suburban Parks and

Recreation District on a com-

prehensive community solar

purchase.

“Community solar gardens

have expanded the way we

think about delivering renew-

able energy solutions to our

customers and their constitu-

ents,” said Alex Montano,

McKinstry program manager.

“The community solar garden

approach eliminates many of

the common obstacles involved

with installing renewable ener-

gy on site and, in some cases, at

a dramatically improved finan-

cial return on investment.”

Dr. Chelsea Stangl, owner

of Wynkoop Dental, the first

certified green dental office in

Denver, rents her space at 1401

Wynkoop St. and is unable

to install rooftop solar. “We

designed our office to have

low-energy consumption, but

as a green practice I was also

motivated to use a better ener-

gy source,” she said.

Stangl purchased 62 panels

in a Denver community solar

array, about a 15.5-kW system,

which offset around 80 percent

of the operation’s electricity

needs. Estimates show Stan-

gl’s system will deliver around

$7,600 in savings the first year,

payback in less than nine years,

and a cumulative savings of

$107,000 at 20 years.

Colorado is demonstrating

that businesses of all kinds not

only support solar, but also are

clamoring for it. With forecasts

of 4 to 5 percent annual hikes

in electricity prices, solar can

be an effective part of both sus-

tainability and a cost-reduction

program.

Solar Continued from Page 34