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Volume 5 - Number 19 | May 7, 2007
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EDITOR'S NOTES
When a project owner elects to utilize multiple prime contractors, the biggest additional liability exposure the owner assumes is exposure to contractor claims for delay and improper scheduling and coordination. But one public owner was able to successfully shift that risk and responsibility to the contractors themselves, to the detriment of the general building contractor on the school project.
In another case, a subcontractor was unable to purchase either of the specified products from the exclusive distributors of those products. The distributors did not like the fact the sub had failed to request pre-bid price quotations. A Minnesota court was asked to decide whether there had been antitrust violations.
The federal government has become increasingly aggressive in responding to contractor claims with counterclaims for violations of the False Claims Act. But just because a claim was denied on the merits and an expert’s methodology was rejected did not mean the claim was necessarily “false.”
This week we continue our two-part article on professional standards of care by Dr. Malcolm Lewis. Dr. Lewis explores the recent history of some standard of care issues, as well as new technologies and future implications.
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CONTRACTOR HAD DUTY TO AVOID HINDERING CO-PRIME CONTRACTOR
A Mississippi court has ruled that on a multiple prime contract project, the general building contractor had a duty to avoid hindering its co-prime electrical contractor. And unlike the construction manager, the building contractor was not protected by a no-damage-for-delay clause in the construction contracts.
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EXPERT’S METHODOLOGY DID NOT WARRANT GOVERNMENT’S FALSE CLAIM ALLEGATION
The U.S. Court of Federal Claims has denied a government counterclaim for violation of the False Claims Act. A claim lacking merit is not necessarily a false claim. And the contractor’s damages expert relied on proper source documents even though the methodology of the computation was rejected by the court.
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CHANGES IN STARDARD OF CARE—PART TWO
By Malcolm Lewis, P.E.
Dr. Malcolm Lewis of CTG Forensics looks at the effect new technologies and environmental issues have on professional standards of care in the design and construction industry.
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