Economic Loss Doctrine Applied in Guam to Bar Design-Build Contractor’s Negligence Claim against its Design Professional Subcontractor for Purely Economic Losses
ConstructionRisk.com Report Vol. #14, Issue #4
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Contractor Claims against Design Professionals,Design-Build,Economic Loss Doctrine
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Design-Build contractor (Maeda Pacific Corp) engaged a design firm to prepare a cost estimate that it used in preparing a bid to the U.S. Naval Facilities Engineering Command (“Navy”) for a water supply system at the Andersen Air Force Base in Guam. After being awarded the design-build contract, the contractor engaged the design firm to [...]
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Liquidated Damages Properly Assessed against Design-Builder Without Regard to Whether Excessive Compared to Actual Damages
ConstructionRisk.com Report Vol. #14, Issue #2
See article in the following topic indices:
Design-Build,Liquidated damages
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Where a design-builder (“contractor”) was assessed liquidated damages by the Contracting Officer under a U.S. Coast Guard contract for the design and construction of prefabricated metal buildings, the contractor filed suit against the Government seeking remission of the liquidated damages based on its argument that the amount set for the LDs was arbitrary and not [...]
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Contractor Cannot Recover for Extra Work Performed without Change Order Approved by Authorized Officials
ConstructionRisk.com Report Vol. #14, Issue #2
See article in the following topic indices:
Apparent Authority,Change Orders,Contract - Notice Requirements,Design-Build,Estoppel,Implied Contract,Quantum Meruit,Unjust Enrichment
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A design-build contractor that entered into a fixed-price contract to upgrade the heating, air conditioning and ventilation (HVAC) system in college dormitories satisfactorily performed all the work it was contracted to do, but also performed significant additional work to correct problems with the existing HVAC system that had not been identified at the outset of [...]
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Assignee of Contract Indemnification Rights under a Design-Build Contract Stands in Shoes of Indemnitee and is Entitled to Recover Defense Costs
ConstructionRisk.com Report Vol. #14, Issue #1
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Assignment,California Code 2778,Crawford,Design-Build,duty to defend,Indemnification,Wrongful death
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Where a firm (Parsons Infrastructure) entered into a contract to design and construct a soda ash processing plant for Kerr-McGee Chemical Corp (KM) and agreed to provide KM with a defense and indemnity against losses arising out of negligent performance of its work, and KM later assigned its property and contract to a new firm [...]
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Expert Survey of Small Sample of Walls Sufficient to Justify Opinion that Much Larger Area of Walls Must be Torn out and Replaced by Design-Builder for Failing to Meet Specifications for Rebar
ConstructionRisk.com Report Vol. #14, Issue #1
See article in the following topic indices:
Defective Workmanship,Design-Build,Expert Witnesses,Specifications,Specifications - Failure to Meet
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Where a design-builder filed suit against the project owner (animal fee manufacturing plant) to collect the balance of fee that was being withheld, the owner countersued for almost $2 million alleging that contractor breached the contract’s requirements for concrete strength and placement of rebar in the concrete. An expert witness testified for the owner that [...]
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Liquidated Damages in Design-Build subcontract Are Enforceable Even Where Far Exceeding Actual Damages
ConstructionRisk.com Report Vol. #14, Issue #1
See article in the following topic indices:
Breach of Contract,Damages,Delay Claims,Delays,Design-Build,Federal Government Contracts,Liquidated damages
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Where a contractor entered into a design-build contract with the U.S. Navy to build four buildings at the Pensacola Naval Air Station, and included a liquidated damages (LD) provision in the subcontract with its subcontractor, that LD provision was enforceable despite evidence that the actual damages incurred by the contractor as a result of alleged [...]
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Design-Builder Entitled to Contractual Indemnity from Subcontractor for Damages to Turbines
ConstructionRisk.com Report Vol. #14, Issue #1
See article in the following topic indices:
Contribution Actions,Design-Build,Indemnification,Waiver of Consequential Damages
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Black & Veatch (“B & V”) contracted with Portland General Electric (“PGE”) to engineer, procure and construct a power generating facility called the Port Westward Power Plant, and it subcontracted to a specialty subcontractor to install the combustion turbine and associated air inlet filter house and air inlet filter duct. The combustion turbine was manufactured [...]
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Ambiguity in Design-Build Contract Specs Interpreted in Favor of Contractor
Ambiguous Specifications,Contra proferentem,Design-Build,Specifications (Defective)
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by Michael C. Loulakis Record Steel and Construction v. United States , 62 Fed. Cl. 508 (2004), provides an excellent example of the evolution of design-build caselaw. The dispute in this case involved whether a design-build contract required foundations to be over-excavated. The design-builder argued that the contract unambiguously made over-excavation a design recommendation – [...]
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Book Review: Design-Build Lessons Learned (2004 Edition)
Design-Build
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Those of you who are interested in design-build have undoubtedly come across Design-Build Lessons Learned, an annual publication authored by Mike Loulakis, the president of the law firm of Wickwire Gavin and one of the country’s foremost authorities on design-build. Mike first started publishing Design-Build Lessons Learned in 1995 as a newsletter designed to give [...]
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Testing Your Ethical Barometer
Change Orders,Design-Build,Ethics
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By: Michael Loulakis The barrage of corporate misdeeds reported over the past year makes one wonder how things could have possibly gotten so out-of-hand. How could Enron’s management get away with “cooking the books” and reporting phantom revenue so easily for so long? Why didn’t someone at Arthur Andersen look at the big picture and [...]
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