EDITOR'S NOTES | Issue 5-9
publication date: Feb 25, 2007
When an owner (or prime contractor) jeopardizes a contractor’s ability to bid on projects, can the contractor pursue a claim against the owner for lost profits on prospective work? Among other things, the answer depends on the following:
Does the contract contain a liquidated damages clause that allows for such an event?
1) Can the contractor show an accurate history of uniform earnings?
2) Can the alleged lost profits be accurately speculated?
3) The question and answer play out in one of two issues before a Colorado appeals court in this week’s first case.
Also at issue this week are questions on the obligations of a prime contractor to its subcontractor when the prime alters the scope of work and adjusts the timetable. Is the prime liable for cost and time adjustments to the subcontractor? A Texas appeals court says yes.
When state law fails to define “public work,” a federal district judge looks it up in the dictionary. The definition provides the information the court needs to determine whether a project required a state-mandated payment bond.
Finally, we introduce a new monthly column by experts from CTG Forensics in Irvine, Calif. Each month, they will present a claims-related article relevant to the construction industry. Vice president William Broz provides an excellent review of the role of an expert witness in this series kick-off.
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