When project owners award multiple prime contracts, dividing the work among the various trades, it is customary to retain a construction manager to administer and coordinate the work. The role of the CM, as defined by the contract documents, varies. The responsibility of the CM toward the construction contractors and their employees is controversial.
In a recent case, the parties used the most common form of construction management agreement, the AIA standard form of agreement between owner and construction manager. The agreement states that the CM is not responsible for safety precautions or procedures. That is the obligation of the construction contractors who are the controlling employers. But, the agreement also says the CM will review and coordinate the safety programs of the contractors and monitor their implementation and compliance.
When the employee of a trade contractor accidentally injured a fellow employee, the injured worker was allowed to sue the construction manager for negligence. The Indiana court reasoned that notwithstanding the general disclaimers of responsibility, the CM had assumed very specific obligations regarding safety procedures and compliance.
Other cases this week addressed a contractor’s scheduled early completion of the work and the waiver of a written change order requirement. The contractor could not recover for delay because its schedule had been unrealistic and it had contributed to the delay. And on a public works contract, the written change order mandate could not be waived by a course of conduct.