EDITOR'S NOTES | Issue 7-25
publication date: Jun 21, 2009
The deletion of work from a construction contract poses unique problems. The project owner is entitled to a credit - a reduction of the contract price reflecting the work the contractor no longer has to perform. But, how is that credit calculated? What happens if the contractor has already started that work? And, what happens if the work has been subcontracted to another company?
This week's issue covers two cases involving deleted work. In one, the owner deleted work the contractor thought it had subcontracted out. The owner took a credit against the prime contract price. The contractor attempted to take a credit against the subcontract price, only to discover that the subcontract did not cover the deleted work. The prime contractor may be left holding the bag.
The other case involves the cost of labor and materials needed for deleted work. This is a recurring challenge with deductive change orders. How does one put a price on work that was never performed?
Also this week, we report on a price/technical tradeoff decision in which a disappointed offeror argued that a numerical scoring system was a flawed evaluation process.
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.
