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CONSTRUCTION CLAIMS CONSULTING ON DEFECTIVE PLANS AND SPECS

The Holloway Consulting Group, LLC is an international construction consulting firm. We have posted a series of articles here at hcgexperts.com on how we work as Construction Claims Consultants to assist and advise our contractor clients on the resolution of construction claims and disputes. We have also posted a Contractor Claim Entitlements summary at disputesinconstruction.com.

This post is on contractor construction claims and entitlement associated with Defective Plans and Specs, or Defective Contract Documents, often referred to as design errors and omissions claims:

CONSTRUCTION CLAIMS CONSULTANTS

DEFECTIVE PLANS AND SPECS

OWNER DAMAGES CLAIMS

After the owner and contractor have resolved change orders and claims related to defective documents, it is not unusual for the owner to seek recovery of some or all of the extra costs from the architect or engineer. Such a lawsuit might be based on either breach of contract or professional negligence in the performance of professional services or failure to meet the standard of care. A common undertaking of the defendant, and its Attorney and Construction Claims Consultant in these situations is to investigate the project to establish a defense and determine if there is a legitimate basis to reduce or eliminate the owner’s damages claims. Such defenses include contributory and comparative negligence, indemnity, and contribution.

Another popular method of reducing or eliminating the design professional’s damages is through the Construction Claims Consultant’s quantification of Betterment and/or First-time costs. Under this approach, the value added to the project through the design professional’s errors and omissions reduces the owner’s damages calculations.

CONSTRUCTION CLAIMS CONSULTANTS | DEFECTIVE PLANS AND SPECS | BETTERMENT COSTS AND FIRST-TIME COSTS

Examples of betterment and first-time costs contained in owners’ damages claims from previous Holloway Consulting cases where we were retained as the Construction Claims Consultant include:

1. Fiberweb mesh flashing material was used in the original masonry wall construction. Synthetic and metal flashing materials were used by the Owner in the reconstruction. The Owner would have incurred additional costs associated with the upgraded flashings, whether in the original construction or reconstruction.

2. The Owner ordered improvements to a remediated exterior elevated plaza area. This new scope was not part of the original construction, and the costs would have been incurred in any case, even if defects were contained in the original construction.

3. New supplemental concrete culverts were installed by the owner during the site remediation at a condominium project. The Owner would have incurred the additional costs associated with these culverts, whether in the original construction or reconstruction.

4. A new concrete retaining wall was installed during the reconstruction of a landscaped area at condominiums. The Owner would have incurred the additional costs associated with this wall, whether in the original construction or reconstruction.

5. In a construction defect claim, the scope of an exterior façade remedial project contained various new, supplemental and upgraded building components. Such first-time costs would have been incurred in any case and should be reduced by the cost of the base scope.

Betterment has been asserted as a defense in a wide variety of cases involving claims against design professionals. One theory is that the law does not allow the owner to be unjustly enriched simply because there was an error or omission in the work. Another theory is that recovery against the design professional should not be allowed unless the design professional is the legal cause of the cost increase.

READ MORE ABOUT HOLLOWAY CONSULTING GROUP’S CASES AS A CONSTRUCTION CONSULTANTS

The Holloway Consulting Group, LLC
Construction Claim Consultants – Construction Experts
12081 W. Alameda Pkwy., #450
Lakewood, CO 80228-2701
Denver Phone: (303) 984-1941
International : (888) 545-0666
Fax: (303) 716-0432

Email: steve.holloway@disputesinconstruction.com
Blog: disputesinconstruction.com
Web: hcgexperts.com

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