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EDITOR'S NOTES | Issue 8-47

publication date: Dec 5, 2010
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As the traditional roles of the parties on construction projects blur, interesting contracting questions arise. The contractor may no longer just construct. The constructor may have design responsibilities. The constructor may be involved in the engineering and procurement of equipment. The constructor may even be responsible for financing the construction. But as these roles evolve, so must the contract documents.

In a case reported this week, a project owner was unable to obtain conventional construction financing. The contractor joint ventured with another party to provide the financing. The lender believed the owner would be responsible for repaying the construction loan. But when the owner paid the contractor in full and the contractor refused to pay the lender, the lender had no recourse against the project owner.

Another case this week involved an apparent discrepancy between a standard state bid form and bid instructions prepared by the local public project owner. The low bidder entered its price properly, contrary to the allegation of the second low bidder. A third case addressed the use of a spreadsheet chart to state a sum certain for purposes of a valid federal claim.



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