Owners' 'bad faith' can relieve contractors of notice requirements

Article Abstract:

A Supreme Court appeal court judgement added a new dimension to the law on notice requirements in construction contracts. The requirements oblige contractors to inform clients, at the appropriate time, of important changes from the original contract. Failure to do this causes the contractor to forego any claims related to the situation. However, the appeal court in the case concerning A.H.A. General Construction Inc. and the New York City Housing Authority ruled that the housing authority's acts of bad faith throughout the course of the contract relieved AHA of notice requirements.

Construction industry, Cases, Laws, regulations and rules, Construction, Building, New York, New York. Housing Authority, A.H.A. General Construction

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Patent versus latent contract ambiguities: who bears the increased costs of performance?

Article Abstract:

Patent and latent contract ambiguities are distinguished from each other. When a contract contains patent ambiguity, the contractor is obliged to inform the government about the ambiguity and ask guidance before starting the work. Furthermore, failure to inquire about the ambiguity puts the contractor accountable for increased costs of performance. However, if the ambiguity is determined as latent, contractor is not obliged for inquiry.

Interpretation and construction, Public contracts, Government contracts

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Warranty of specification-shifting risk to the contractor

Article Abstract:

Implied warranty obligations under the Spearin doctrine have been used for years, but the applicability of Spearin may have been limited by a recent case relating to a standard express warranty clause. Latent defects in an owner-specified material should not be seen as a defect in a contractor's work, but as a defect in the design, for which the owner is responsible in a design-bid-build project.

Analysis, Implied covenants

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