TERMINATION OF FEDERAL CONSTRUCTION CONTRACTS BASED ON DEFAULT

Construction contracts with the federal government must generally be completed by the scheduled completion date because the government has an interest in its occupancy or use of a project. The government normally secures the completion of the project by the scheduled completion date through performance bonds, penalties for delay, or escrow accounts.

Bid Document Disclaimer

To protect themselves from any liability for mistakes in the bid documents, owners may include a general disclaimer. Such disclaimer will notify the contractor that the owner denies any liability associated with defects in the bid documents.

A DESIGN PROFESIONAL'S DUTIES TO ADJACENT LANDOWNERS & SUBSEQUENT OWNERS

A design professional who enters into a contract with an owner for a construction project owes certain duties to the owner under the contract. Even though the design professional does not enter into any contracts with adjacent landowners or subsequent owners, the design professional may owe certain duties to the adjacent landowners or the subsequent owners.

Withholding Contractor Payments

When a construction project ensues, the contractors are generally paid for their work through a series of progress payments. When the contractor's work is delayed, he may receive reduced payments. Additionally, some owners may go so far as to withhold payments completely for delay in the contractor's performance.

A DESIGN PROFESSIONAL'S STANDARD OF CONDUCT

A design professional who enters into a contract with an owner for a construction project has a duty to conform to a standard of conduct, which duty is in addition to his or her contractual duties. The design professional's standard of conduct is to possess the necessary skills and ability that will allow him or her to perform his or her services in a reasonable and a proficient manner.