Subcontractor Had Rights as Third Party Beneficiary Under Federal Government Contract
ConstructionRisk.com Report Vol. #13, Issue #8
See article in the following topic indices:
Federal Government Contracts,Payment Disputes,Subcontract Dispute,Third party beneficiary
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Where the federal government contracting officer issued a contract modification to the prime contract to require the government to issue a two-party check jointly to the prime and a subcontractor that had complained about not being paid, the subcontractor had rights against the government as a third party beneficiary when the government failed to issue [...]
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Economic Loss Doctrine Bars Contractor’s Insurance Carrier from Bringing Subrogation action against Design Professional for Negligence
ConstructionRisk.com Report Vol. #13, Issue #7
See article in the following topic indices:
Contractor Claims against Design Professionals,Economic Loss Doctrine,Negligence,Negligent Misrepresentation,Third party beneficiary
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Where Contractor’s insurance carrier brought a subrogation action against the project’s design professional for negligent performance, including failure to prepare contract drawings and specifications in a manner “fully coordinated for bidding by the various contractors” as required in the design professional’s scope of service, it was held that the insurer had no third-party beneficiary rights [...]
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Engineer Did not have Duty to Report to the Public the Environmental Findings it Produced for its Client
ConstructionRisk.com Report Vol. #13, Issue #3
See article in the following topic indices:
Negligence,Standard of Care,Third party beneficiary
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Where engineering firm was retained by the owner of a beryllium plant to perform “stack testing”, it found that beryllium emissions significantly exceeded allowable limits of the EPA, and the engineer so advised its client. It did not report the findings to any government agency or to the community. A woman in the community became [...]
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Architect Cannot Sue Construction Manager for Negligence
Construction Management,Economic Loss Doctrine,Indemnification,Negligence,Third party beneficiary,Third Party Claims
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Where the project architect sued the construction manager (CM), asserting that that the CM negligently performance its services and thereby impacted the architect’s services, costs, fees, and profits, the court held that the contract between the CM and owner did not create a duty of the CM to the architect, and that the architect no [...]
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Subcontractor Barred from Appealing Federal Government Decision on a Prime Contract Dispute Even though it was 3rd Party Beneficiary
ConstructionRisk.com Report Vol. #12, Issue #4
See article in the following topic indices:
Federal Government Contract,Request for Equitable Adjustment,Standing to Appeal,Subcontractor issues,Third party beneficiary
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Subcontractor is not permitted under the Contracts Disputes Act (CDA) to bring an action against the federal government where the prime contractor failed to pay the subcontractor for its work. This is true even though the federal department (U.S. Navy) committed to issuing a two-party check because it knew the subcontractor was having difficulty getting [...]
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