In Parts 1 and 2 of this series, we discussed the circumstances that led to the planned phase-out of the London Inter-bank Offered Rate, commonly referred to as “LIBOR” and the proposed replacement rate known as the Secured Overnight Financing Rate (“SOFR”). In this last part of the series, we will present the proposed language recommended by the Alternative Reference Rate Committee (“ARRC”) to be used in new contracts that reference LIBOR.
Everyone in the construction industry is familiar with the long running joke, “the final phase of construction is always litigation.” Like many old idioms, there is some truth to it. But in the ever evolving world of complex construction litigation, the landscape is changing. The rising cost of litigation has created a need for more efficient and cost effective ways to handle the ever present disputes that arise in the course of most construction projects.