Either Independence Day or the Fourth of July, it’s often celebrated with fireworks, friends, and barbecue. While you’re enjoying this weekend, you may find yourself discussing what makes the best barbecue: gas, charcoal, or wood; smoking or grilling; sauce and/or dry rub; sweet or spicy; and the like. (Are you hungry yet?)
Most people have their own idea of what’s necessary for the best barbecue. Combining ideas of what’s best is the recipe for a mouth-watering result or successful project. Differing ideas of what’s best often leads to a dispute. Resolving that dispute depends on what the recipe (the agreement or contract) required.
While barbecue recipes can be short and simple, contracts can be long and complicated. Fundamentally, though, recipes are very much like contracts: what’s required, how much of each part/ingredient, in what order should they be assembled/added, when, and for how long?
Recipe for a Successful Construction Project
- Purpose (end-user, goal, and/or need);
- One each: owner, designer, and contractor (pre-mix (design-build) or mix later (design-bid-build));
- Adequate Funding;
- Dash of Legal Advice; and
- A Fair Amount of Reasonableness.
Government Liability for Third-Party Delays
Generally, the Government is not responsible for delays caused by third parties, even other contractors at its own project site, unless the Government affirmatively indicates the site will be ready and available.
Keep a Pass-Thru Claim Burning, Don’t Extinguish Liability
Prime contractors, have you ever submitted a subcontractor’s claim to a public owner? Subcontractors, have you ever wanted to submit a claim against the government, but you had no contract with government?
When You Can’t Recover from a Third-Party (The Economic Loss Doctrine)
Suppose that you (the Contractor) had extra costs and want payment for those extra costs from the designer.
Barbecue and Construction Contracts
While barbecue recipes can be short and simple, contracts can be long and complicated. Fundamentally, though, recipes are very much like contracts: what’s required, how much of each part/ingredient, in what order should they be assembled/added, when, and for how long?
Show Your Work
A mentor of mine once said that process and procedures can be more important than substance and results. Like solving a math problem, how you solve it is often more important than the answer itself. The same is true in resolving construction contract disputes with public owners.
Substandard is Not Defective
The government need not follow the industry standard. It can do less or more.
Hide, Seek, & Seek
Have you ever played hide and seek? If you are the seeker, do you win the game when you find the hidden person? Yes, of course! Unless, you’re a government contractor.
Contractor Schooled School
Have you ever done exactly what you were supposed to do, but it didn’t work and you were blamed anyway? Nevertheless, if contractors follow the owner’s plans and it still doesn’t work, the contractor may be without fault – this is as it should be.
Walk It Off, Keep Going
During a recent soccer game, my seven-year-old son took the ball squarely in the face. But, he walked it off and continued playing. Contractors must do the same with changes.
