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Volume 5 - Number 02 | January 8, 2007

EDITOR'S NOTES
Whether you are pursuing mediation, arbitration or litigation, one thing is for sure—you want your expert firmly on your side. And, you don’t want any conflicts of interest. In this week’s first case, a Texas appellate court considered a situation that could (and should) have been easily avoided by the parties involved. One party sought advice from a consultant regarding construction delays on a project. It paid for the expert’s services, but ultimately chose not to retain his firm. The opposing party did hire the same firm during the course of the ensuing litigation. Was there a conflict of interest? Did the expert overstep his ethical bounds? Did the hiring party overstep them? Should the witness be disqualified? The situation gives rise to an interesting legal debate.

Also on this week’s Advisor docket are issues over a subcontractor’s negligence coupled with a statute of limitations, the constitutionality of a state DBE qualification, questions over an engineer’s inspection in light of a contract disclaimer and an article on cost controls as they relate to construction claims.


TEXAS COURT GIVES RESERVED OK FOR EXPERT SIDE-SWITCHING
By Cliff Hutchinson
In a case of first impression, a Texas appeals court looks at the ethics and repercussions of an expert witness that switched sides in a case dealing with construction delays.

CONTRACTOR RESPONSIBLE FOR BURIED GRUBBING DEBRIS
Failure to oversee a subcontractor nets legal problems for a contractor several years after it finishes its project. It is financially responsible to the owner for extra work created by the negligence of the subcontractor.

ILLINOIS DISADVANTAGED BUSINESS PROGRAM PASSES CONSTITUTIONAL MUSTER
A federal court determines that Illinois fulfilled its duty to encourage participation by qualified disadvantaged businesses on state highway projects that receive federal funding.

DISCLAIMER DID NOT PROTECT ENGINEER FROM INSPECTION CLAIM
A contract disclaimer does not remove culpability from an engineer for its failure to adequately inspect a contractor’s work, especially in light of default on the part of the contractor. The engineer may be found negligent.

COSTS OVERRUNS: NOW WHAT?
By Larry True
Cost overruns happen for a variety of reasons. Cost controls expert Larry True suggests that most overruns fit into one of three categories. He draws on his experience to offer tried and true methods for identifying and dealing with overruns.