Click here to read the article
Adams and Reese Partner and Construction Team Leader Trent Cotney is published by the Florida Roofing and Sheet Metal Contractors Association (FRSA), authoring “How to Manage NDAs in the Construction Industry.”
The FRSA is an association of roofing, sheet metal, air conditioning contractors, and industry-related companies including manufacturers, suppliers, manufacturers’ representatives, roofing consultants and others in the roofing field.
Cotney, who serves as FRSA General Counsel, discusses how non-disclosure agreements (NDAs) are becoming an essential part of doing business in the construction industry. The use of NDAs is becoming more prevalent, particularly in sectors such as alternative energy, high-end retail and luxury sports venues. Clients seek to protect unique designs, proprietary processes and high-end features. Additionally, as workers and contractors move between jobs more frequently, clients are increasingly concerned about safeguarding their competitive advantages.
“For construction company owners, understanding how to navigate and implement NDAs effectively is critical to safeguarding your interests and maintaining trust with clients,” writes Cotney. “The recent case of Venture Global Calcasieu, LLC vs. Kiewit Louisiana Co. highlights the potential risks and challenges associated with NDAs in construction projects, making it imperative for contractors to establish clear guidelines and protections.”
Cotney says one of the most common pitfalls of NDAs is ambiguity. “Construction company owners should ensure that their NDAs clearly define what constitutes confidential information,” Cotney writes. “It is advisable to avoid broad statements such as ‘everything’ being confidential. Instead, companies should specify the types of information that are protected, whether it’s design plans, project methodologies, pricing details or client lists.”
Cotney added that construction company owners should work with their attorneys to draft NDAs that balance the client’s need for confidentiality with the practicalities of running a construction business. This proactive approach not only helps avoid disputes but also protects project timelines and budgets from unnecessary delays.
“For construction company owners, NDAs are not just legal formalities. They are becoming essential tools for building trust with customers and protecting your business,” Cotney writes.
At Adams and Reese, Cotney is a leading member of one of the largest construction teams in the country with more than 90 attorneys licensed to practice construction law across more than 30 states. A Partner in the Adams and Reese Tampa office, Cotney represents construction and infrastructure clients, including GCs, subcontractors, suppliers, manufacturers, architects, engineers, roofers, developers, and other professionals. Cotney is a board-certified construction lawyer licensed in eight states and Washington, DC. Cotney is an EU arbitrator for construction-related disputes. He is also experienced in construction litigation and arbitration, including OSHA defense, lien law, bond law, bid protests, and construction document review and drafting.