Choice of Law and Forum Selection in Construction Contracts: State Comparison Chart

by Practical Law Real Estate

A Chart surveying the laws of all 50 states and the District of Columbia regarding the enforceability of choice of law and forum selection clauses in construction contracts. While courts often uphold these negotiated terms, this Chart highlights the statutory prohibitions enacted in many states to address unequal bargaining power between parties. The Chart details which jurisdictions consider these provisions void or unenforceable, especially in contracts for construction projects located within their borders. It offers critical insight into the complex interplay between state public policy and contractual freedom. It also examines the potential preemption of state statutes by the Federal Arbitration Act (FAA) as applied to arbitration agreements. This Chart, updated semiannually, provides a valuable tool for counsel drafting and negotiating dispute resolution provisions in construction agreements nationwide.