Volume 7 - Number 14 | April 6, 2009
Recent Issues
EDITOR'S NOTES | Issue 7-14
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?
RECIPROCAL WAIVER DID NOT APPLY TO PROPERTY OUTSIDE THE SCOPE OF WORK
A reciprocal waiver of claims for insured losses only applies to contracted work, says a state high court in a departure from decisions proffered by other state high courts. Any damage to adjacent property is not covered.
ACCIDENTAL E-MAIL LEADS TO CONTRACTOR DISQUALIFICATION
When a contracting officer attaches the wrong document to an e-mail, the contractor that receives the e-mail is disqualified from participating in the procurement because the attachment contains sensitive information about its competitors.
PROJECT OWNER WITHHELD SUPERIOR KNOWLEDGE AND WAIVED CLAIM NOTICE REQUIREMENT
Information withheld from a public project comes back to haunt a state agency after the contractor successfully pursues a claim for increased costs related to the change order.
