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Volume 5 - Number 21 | May 21, 2007
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EDITOR'S NOTES
The “measured mile” approach to determining the validity of claims has long been an acceptable method in the construction industry. It is founded on a reliable baseline, and to be an admissible argument, the calculations must be an accurate reflection of “normal” conditions. Government boards of contract appeals widely accept this method, as evidenced in this week’s first case. However, the ASBCA instructs the parties in this case to recalculate the damages because of the contractor’s on-the-job learning curve. This is a second issue in a case we presented last week.
The second case considers the problems that occur when a contractor gives the wrong schedule to its subcontractor. When the sub loses money because of delays caused by conflicting information, who is liable? In this scenario, the contractor is responsible.
Finally, a project owner finds itself shortchanged when its project engineer issues flawed design plans. Because of a limitation of liability clause, the owner can only pursue reimbursement for the original fee, nothing more.
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CONTRACTOR USES “MEASURED MILE” APPROACH TO QUANTIFY SITE CONDITION CLAIM
The ASBCA accepts the measured mile approach as a reasonable method to determine damages for a differing site condition. However, the parties must readjust the actual damages based on the contractor’s learning curve. This case was also presented last week for its issues regarding a differing site conditions claim.
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LIMITATION OF LIABILITY CLAUSE ENFORCED IN ENGINEERING AGREEMENT
In a limitation of liability clause for an engineering agreement, the project owner can only collect up to the amount paid to the subcontractor, says a state appeals court. Even if the cost of associated damage, claims and losses exceeds the original fee, the project owner is limited by the agreement.
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ON THE MOVE
Find out who got hired and who got promoted in this new column. Want to see your company’s latest news here? E-mail it to editor@wpl.net.
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EICHLEAY 2007 AUDIO CONFERENCE
Construction Claims Online is proud to announce the first in a series of audioconferences to be presented in the upcoming months, starting with Eichleay Update 2007
June 27, 2007 1:00 - 2:30 pm Eastern Time
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