EDITOR'S NOTES | Issue 7-14
publication date: Apr 12, 2009
Insurance is a tricky beast. With exclusions and exceptions, waivers and waiting periods, liabilities and limits, risks and riders, interests and indemnities, it’s no wonder that it takes an army of attorneys and judges to sort and interpret the nuances that comprise insurance law. (It may also explain why doctors have to charge so much for their services, but that’s a discussion for another day.) Today’s topic is a reciprocal waiver of claims for insured losses. If a contractor causes damage to a project and it affects other areas of the property not covered under the contract, who pays for the damage? The answer depends on the type of insurance and the wording of the contract, among other things, said the state high court in a decision that aberrates from its counterparts in other states.
With last week’s scare of the Conficker worm invasion, companies are renewing their efforts to keep their computer systems safe. But, even the best firewalls won’t protect us from human error. It’s that error that cost one contractor its eligibility to bid on a job. The contracting officer attached the wrong document to an e-mail that it sent to a bidder – a document that contained sensitive information about the bidder’s competitors. To avoid the appearance of impropriety, the government agency barred the contractor from bidding on the project. Was that move legal? The GAO said yes.
And finally, we have yet another example of what happens when an owner withholds information crucial to a contractor’s success on the project. In this case, it involved a state transportation department and a waterline that needed to be moved. It begs the question: If you want a project to be successful, why withhold information?
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