EDITOR'S NOTES | Issue 6-22
publication date: Jun 1, 2008
Only a century ago, bartering and trading were common forms of payment for goods and services. While the barter system may still exist today to some degree, the almighty dollar, however weak it may currently be, is the more accepted form of exchange. In this week’s first case summary, the low bidder on a transportation project offered up coal as the asset behind its surety bid bond. Although the FAR (Federal Acquisition Regulation) makes allowances for non-monetary assets to be used in a bid guarantee or bid bond, it must be tangibly placed in an escrow account. The GAO determined that the coal could not be appropriately housed to meet the escrow requirement, and therefore concluded that the bid was nonresponsive.
Also this week, a state agency should have checked the National Electric Code when its contractor said the project’s specifications violated the code. Instead, the agency wrongly terminated the contractor for default. And, homeowners received a $300,000 jury award because of water leaks in their home that led to a dispute over ambiguous contract terms.
This page is available to members only.
To subscribe, click
here
Construction Claims Online Features and Benefits
Whether your role in the construction claims process is as a building owner, designer, contractor, facility manager, attorney or consultant, you will want to keep up with the latest developments in construction law, federal and state policy, construction process and best practices.
Whether you sign up for our free or paid content, Construction Claims Online provides information you need to achieve successful outcomes for project issues and your clients' best interests.
Avoid costly errors by understanding how the boards and courts look at typical disputes situations.
Achieve successful project outcomes.
Defend against unsubstantiated claims.
Reduce or eliminate risks.
