Volume 6 - Number 23 | June 9, 2008 - Construction Claims Advisor

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You are here: Home » Volume 6 - Number 23 | June 9, 2008

Volume 6 - Number 23 | June 9, 2008

EDITOR'S NOTES | Issue 6-23: Explaining the merits of res judicata, the Supreme Court has said, “[When] a final judgment has been entered on the merits of a case, ‘[i]t is a finality as to the claim or demand in controversy ... not only as to every matter which was offered and received to sustain or defeat the claim or demand, but as to any other admissible matter which might have been offered for that purpose.’” Nevada v. United States, 463 U.S. 110, 129-30 (1983) (quoting Cromwell v. County of Sac, 94 U.S. 351, 352 (1876)). The Federal Circuit Court of Appeals recently addressed the matter when a contractor filed 10 related claims against the U.S. government for work on a naval chapel project. Nine of the claims were settled, but the contractor tried to introduce the tenth claim in a separate venue. The court rejected the split claim tactic under the merits of res judicata and the Contracts Dispute Act.

Also this week, we cover the issues of small business provisions in contracts, reciprocal waivers for insured property losses and non-assignment clauses on a defaulted development project.

LOW BID REJECTED DUE TO SBE NONCOMPLIANCE EVEN THOUGH MUNICIPAL CODE WOULD HAVE ALLOWED ACCEPTANCE: A small business provision in a municipal contract causes problems for the low bidder, which did not meet the contract’s 35 percent SBE threshold.

NEBRASKA HIGH COURT APPLIES AIA WAIVER CLAUSE TO ALL INSURED PROPERTY: A reciprocal waiver can be applied to all insured property, not just the area where work is performed.

NON-ASSIGNMENT CLAUSE DID NOT VOID ASSIGNMENTS: A non-assignment clause prevents an assignor from evading contractual obligations. It does not void the assignment of the contract.