October 2016 - EJCDC - Engineers Joint Contract Documents Committee

0 Contents of a settlement agreement, by Hugh Anderson

An alert EJCDC member brought this news item to our attention. In a published settlement agreement, an engineering firm agreed to pay millions to settle a dispute about alleged lapses in detecting contractor workmanship errors on major water and sewer projects. What factors might lead to such a result? A few general comments: Settlements are […]

0 Is a general contractor an innocent “seller” of building materials entitled to protection under the Texas Products Liability Act? Centerpoint Builders GP, LLC v. Trussway, Ltd. Supreme Court of Texas (2016), by Hugh Anderson

Centerpoint was the general contractor on an apartment building project. Centerpoint purchased roof trusses directly from the manufacturer, Trussway. During construction a truss had been set in place but not yet installed. A worker retained by a subcontractor crossed the truss carrying gypsum wallboard. The truss broke, and the worker was rendered a paraplegic by […]

0 Whether a subcontractor is bound by a price proposal submitted to a general contractor, in a situation in which negotiations regarding price and subcontract terms take place after the proposal is submitted. C.G. Schmidt, Inc., v. Permasteelisa North America. United States Court of Appeals, Seventh Circuit (2016), by Hugh Anderson

C.G. Schmidt (CGS) was a candidate to be the general contractor on an 18-story office building project in Milwaukee. CGS’s initial proposal to the owner was based in part on a $12 million sub-bid for the building’s curtain wall, by Permasteelisa North America (PNA). CGS and PNA refrained from entering into a subcontract while CGS […]

0 What is the duration of a payment bond? Maschmeyer Concrete Company of Florida v. American Southern Insurance Company. United States District Court, Middle District, Florida (2016), by Hugh Anderson

The City of Orlando solicited bids for concrete repair and construction. The initial term of the contract was one year, but the City could renew the contract for additional terms up to five years total. The contractor was required to provide a payment bond. The payment bond that the contractor furnished contained an express warning […]

0 Effect on a third party of a settlement agreement between the project owner and a supplier of materials. Aggregate Construction, Inc., v. Aaron Swan & Associates, Inc. Supreme Court of South Dakota (2015), by Hugh Anderson

Aggregate Construction was a supplier to highway contractors. The specifications for a South Dakota DOT project required aggregate that would meet a specific sodium sulfate soundness level. Aggregate retained Swan to test aggregate from a particular pit, and after testing Swan informed Aggregate that the material met the sodium sulfate requirement. Aggregate offered to supply […]

0 Whether a company that collected field information about an electrical utility’s facilities was practicing surveying. Southeastern Reprographics, Inc., v. Bureau of Professional and Occupational Affairs. Commonwealth Court of Pennsylvania (2015), by Hugh Anderson

The Central Electric Cooperative (CEC), a rural electric distribution company, contracted with Davey Resource Group (DRG) to conduct a field inventory of all CEC equipment, including transmission, distribution, and light poles, equipment, regulators, and meters. These CEC assets were spread out over several Pennsylvania counties. DRG used maps and mapping-grade GPS and GIS technology to […]

0 Engineering firm’s duty to defend project owner against a claim based on design deficiencies. Penta Corporation v. Town of Newport. Superior Court, New Hampshire (2016), by Hugh Anderson

The Town of Newport, N.H., retained AECOM to study the Town’s wastewater treatment plant, prepare drawings and specifications of upgrades, and provide construction-phase engineering services. AECOM recommended a disc filter system as part of the facility’s phosphorus treatment upgrade. Penta Corporation constructed the new upgraded plant using drawings and specifications prepared by AECOM. The upgrade […]