{"id":897856,"date":"2020-08-19T11:33:52","date_gmt":"2020-08-19T17:33:52","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=897856"},"modified":"2020-08-19T11:33:55","modified_gmt":"2020-08-19T17:33:55","slug":"insurance-claims-releases","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/insurance-claims-releases\/","title":{"rendered":"STOP in the Name of Releases, Before They Break Your Claims"},"content":{"rendered":"\n<p>Amy Elizabeth Garber | <a rel=\"noreferrer noopener\" href=\"https:\/\/www.buildsmartbradley.com\/2020\/08\/stop-in-the-name-of-releases-before-they-break-your-claims\/?utm_source=Bradley+Arant+Boult+Cummings+LLP+-+BuildSmart&amp;utm_campaign=e2766d3a4c-RSS_EMAIL_CAMPAIGN&amp;utm_medium=email&amp;utm_term=0_b504caf31b-e2766d3a4c-78863422\" target=\"_blank\">Buildsmart<\/a><\/p>\n\n\n\n<p>Given the uncertainty that COVID-19 has brought to federal projects, it is imperative now more than ever that contractors preserve rights to potential <a href=\"https:\/\/www.myconstructionexpert.com\/blog\/property-insurance-claims-procedures-should-be-transparent-and-uncovered-in-market-conduct-studies\/\" target=\"_blank\" rel=\"noreferrer noopener\">claims<\/a> at all turns. Fortunately, with careful reading and documentation, contractors can satisfy the government\u2019s desire for releases while <a href=\"https:\/\/www.myconstructionexpert.com\/blog\/early-expert-consultant-retention-make-or-break-construction-claims\/\" target=\"_blank\" rel=\"noreferrer noopener\">preserving their claims<\/a>. A recent Armed Services Board of Contract Appeals decision is yet another caution for any contractor that signs a release without preserving claims (see Horton Construction Company, Inc., ASBCA 20-1 BCA \u00b6 37,622 (June 2, 2020)).<\/p>\n\n\n\n<p>In&nbsp;<em>Horton<\/em>, the general contractor for a concrete crushing and erosion control project signed several modifications that stated: \u201cContractor unconditionally waives any charge(s) against the Government arising under the revised statement of work of this contract.\u201d At final payment, the contractor signed a certification releasing the government \u201cof and from all liabilities, obligations, claims, and demands whatsoever under or arising from the said contract, other than claims in stated amounts as listed below.\u201d The contractor did not list any claims on the document. Nevertheless, the contractor did, in fact, have a claim based on the fact that it priced its production rate based on the government\u2019s estimate of 69,000 tons of concrete on site, when only 30,000 tons were available. The contractor later argued before the board that its project manager who signed the modifications did not have authority to do so. The board disposed of that argument based on the fact of the project manager\u2019s evident authority to act on behalf of the contractor during the project.<\/p>\n\n\n\n<p><em>Horton<\/em>&nbsp;is a reminder that&nbsp;<em>any<\/em>&nbsp;contractor personnel who sign&nbsp;<em>any<\/em>&nbsp;document containing a release should stop in their tracks, read, and consider what they are releasing. In&nbsp;<em>Horton<\/em>, the release provided space to list claims, but space or not, a contractor should repeatedly list any pending claims that it wants somewhere on the release every time a release is signed.&nbsp; Consistency is key: Carving out a pending claim in one progress payment release may be insufficient to preserve that claim if the next release does not do so. Keep in mind that a contractor (or subcontractor) may also want to be sure it excepts unpaid retainage, agreed but unfunded change orders, and claims.<\/p>\n\n\n\n<p>Now more than ever, contractors need to provide for contingencies and preserve future claims. Contractors can, and should, make a habit of negotiating a general <a href=\"https:\/\/www.myconstructionexpert.com\/blog\/reservation-of-rights-letter-negates-interest-in-litigation\/\" target=\"_blank\" rel=\"noreferrer noopener\">reservation of rights<\/a> for every single release. And do not let the government tell you otherwise: The\u00a0FAR expressly permits\u00a0contractors to do so. If all else fails, while not guaranteed to preserve a claim, it may be possible to preserve claims by\u00a0including reservation of rights language\u00a0with the release.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Amy Elizabeth Garber | Buildsmart Given the uncertainty that COVID-19 has brought to federal projects, it is imperative now more than ever that contractors preserve rights to potential claims at all turns. Fortunately, with careful reading and documentation, contractors can satisfy the government\u2019s desire for releases while preserving their claims. A recent Armed Services Board&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/insurance-claims-releases\/\">Continue reading <span class=\"screen-reader-text\">STOP in the Name of Releases, Before They Break Your Claims<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[10885],"tags":[9895,10701,10749],"class_list":["post-897856","post","type-post","status-publish","format-standard","hentry","category-property-insurance-claims","tag-advise-consult","tag-property-insurance-claims","tag-reservation-of-rights","entry"],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>STOP in the Name of Releases, Before They Break Your Claims - Advise &amp; 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