Volume 6 - Number 36 | September 15, 2008
Recent Issues
EDITOR'S NOTES | Issue 6-36
The beauty of a democracy is that the citizens have a voice and are encouraged to use it. When a roadwork expansion project ripped through the center of a South Carolina town, the citizens were not happy. But four years later, when the five-mile stretch of road was still not complete and severely behind schedule, the citizens met and demanded that something be done. In an attempt to resolve the PR nightmare (as well as finish the road), the South Carolina Department of Transportation ended the contract for convenience, declared a safety emergency and issued a non-competitive award to another contractor. A watchdog citizen in another part of the state protested the award and filed suit against the DOT for evading statutory provisions. The end result for the town’s residents was that the road was completed. The state supreme court determined, however, that the project was not a safety hazard and that the DOT overstepped its bounds.
Also this week, a contractor successfully argues that it should not have to follow two different claim procedures when filing a claim. And, a contract that disallows consequential damages for late completion can still allow liability for direct losses associated with that delay.
NON-COMPETITIVE AWARD OF “EMERGENCY” ROAD CONTRACT NOT JUSTIFIED BY ALLEGED SAFETY CONCERNS
Delayed completion of a roadway project does not trigger an emergency, nor does it justify a non-competitive bidding award to complete the project.
EXTENDED JOB SITE COSTS RECOVERED DESPITE DISCLAIMER
Direct losses associated with a project’s delayed completion do not fall within the realm of a disclaimer against consequential damages. Extended on-site costs can be recovered.
CONTRACTUAL CLAIMS PROCEDURE PROVIDED EXCLUSIVE REMEDY
A contractually mandated claim procedure overrides a statutory claim procedure on a municipal project. The contractor is not obligated to follow both procedures.
more articles >>
