Contractor’s professional liability (CPrL) policies are becoming popular for their ability to cover damages arising from the acts, errors, and omissions of professional services performed by or on behalf of any construction firm, be it a general contractor (GC), design-builder, construction manager (at risk or agency), or specialty subcontractor.
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Dog kennels and shelters can be noisy places. The normally hard surfaces used for walls, floors, and ceilings can create an echo chamber where one dog’s barking can reverberate throughout the entire facility.
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Masonry brickwork is testimony to the traditional collaboration between architect, engineer, and mason. Unfortunately, many architects and engineers have curtailed their collaborative construction activities, perceiving the risk of litigation as too great.
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Standard-form contracts used in the construction industry specifically reference the possible use of arbitration, although the parties may have to check a box on a form to make this the final dispute resolution process.
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The doctrine of privity in the common law of contract protects architects and engineers from lawsuits by contractors by requiring that for one party to sue another, there must be a contract between them.
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This is the second article in a two-part series on privity. The first provides a history of the decline of the 18th century ‘Law of Privity.
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Until its abandonment over the last half-century, the law of privity was a reliable defense for architects and engineers against claims for negligence brought by third parties, even if personal injury was involved.
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The words ‘errors and omissions’ (E & O) are practically taboo in architectural circles and are rarely spoken—even in private conversations between architects, engineers, and their professional employees.
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A flow-down provision states the terms of the contract at a higher tier are also binding on the lower-tier contractor. For instance, the subcontract between the general contractor and the electrical installer usually contains a flow-down provision stating the terms and conditions.
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All claims and disputes between the owner and the contractor on projects using American Institute of Architects (AIA) A232, General Conditions of the Contract for Construction must be submitted to a first-fact-finder for investigation and a written decision before proceeding to mediation or arbitration.
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