{"id":900078,"date":"2022-06-23T15:13:42","date_gmt":"2022-06-23T21:13:42","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=900078"},"modified":"2022-06-23T15:13:45","modified_gmt":"2022-06-23T21:13:45","slug":"construction-claims-contract-delivery-method","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/construction-claims-contract-delivery-method\/","title":{"rendered":"You Can\u2019t Treat Construction Claims Like Your Grandkids"},"content":{"rendered":"\n<p>Matthew DeVries | <a href=\"https:\/\/www.bestpracticesconstructionlaw.com\/2022\/06\/articles\/federal-construction\/claims\/grandkids\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Best Practices Construction Law<\/a><\/p>\n\n\n\n<p>I have seven children. and two of them have flown the coop.\u00a0 I also have two grandchildren who are ripe for spoiling. You see, grandchildren are a different<strong>\u00a0type of kid<\/strong>, which means I get to treat them different than the kiddos living under my roof.\u00a0 In construction, however, some courts have held that the\u00a0<strong><a href=\"https:\/\/www.myconstructionexpert.com\/blog\/construction-contract-overlooked-points\/\" target=\"_blank\" rel=\"noreferrer noopener\">type of contract delivery method<\/a><\/strong>\u00a0do not change the treatment of the other contract clauses, such as the applicability of a differing site conditions clause.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.bestpracticesconstructionlaw.com\/wp-content\/uploads\/sites\/850\/2022\/06\/kids-640x640.png\" alt=\"\" class=\"wp-image-3949\"\/><\/figure>\n\n\n\n<p><em>Appeal of John C. Grimberg Co., Inc.<\/em>, ASBCA No. 58791 (Oct. 25, 2018) involved the construction of a biolab facility at Fort Detrick, Maryland. The contract was a design-build contract.&nbsp; As is typical of a design-build contract, no unit prices for rock excavation were set for because the contractor\u2019s foundation solution is not established at the time of award. Interestingly, this contractor had performed other contracts at Fort Detrick involving deep foundations that happened to be design-bid-build contracts containing unit prices for excavation.<\/p>\n\n\n\n<p>During construction, the presence of incompetent rock forced the contractor to use more drilling rigs than anticipated.&nbsp; This crowded the site and prevented scheduled commencement of grade beams and rough-in of underslab MEP work. By the time the contractor completed drilling piers, it had excavated nearly four times the amount it had anticipated in its proposal.&nbsp; The contractor submitted a&nbsp;Request for Equitable Adjustment, alleging that it had encountered a Type I differing site condition\u2014i.e, where the site differed materially from those represented by the government. The contracting officer denied the claim, and the contractor appealed.<\/p>\n\n\n\n<p>To establish such a claim, a contractor must prove: (1) the conditions indicated in the contract differed materially from those actually encountered during performance; (2) the actual conditions were reasonably unforeseeable to the contractor at the time of bidding; (3) contractor reliance; and (4) damages.&nbsp; In this case, the board rejected the government\u2019s argument that the differing site conditions clause is applied more restrictively to a design-build contractor than in the design-bid-build context. The board reasoned:<\/p>\n\n\n\n<p>The identical DSC clause is required to be included in fixed-price construction projects, whether the design-bid-build or design-build method of contracting is utilized. There is no justification for interpreting the clause differently in the design-build context. As appellant concedes, design risk is transferred to contractors in the design-bid context, but not the risk of DSCs. A design-builder does not forfeit its rights under the DSC clause to rely on solicitation representations of subsurface site conditions.<\/p>\n\n\n\n<p>The board concluded the contractor had established Type I differing site conditions claim that the \u201cquantities of rock encountered greatly exceeded the quantity reasonably foreseeable based on a fair reading of contractual indications, albeit the Project was constructed in highly-variable karst topography at the site.\u201d<\/p>\n\n\n\n<p>Ultimately the decision is a good lesson for contractors to document \u201call of the facts, circumstances and contractual indications of subsurface conditions,\u201d which is what the board relied upon in making its decision.\u00a0 Another lesson learned is the importance of \u201creasonableness\u201d when drafting or submitting claims.\u00a0 Although the board found that two of the borings used by the contractor were unreasonable, it was \u201cmore reasonable\u201d than the government\u2019s analysis.\u00a0 In the end, reasonableness matters.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><strong>When one of your cases is in need of a construction expert, estimates, insurance appraisal or umpire services in defect or insurance disputes &#8211; please call Advise &amp; Consult, Inc. at 888.684.8305, or email <a href=\"mailto:experts@adviseandconsult.net\" target=\"_blank\" rel=\"noreferrer noopener\">experts@adviseandconsult.net<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Matthew DeVries | Best Practices Construction Law I have seven children. and two of them have flown the coop.\u00a0 I also have two grandchildren who are ripe for spoiling. You see, grandchildren are a different\u00a0type of kid, which means I get to treat them different than the kiddos living under my roof.\u00a0 In construction, however,&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/construction-claims-contract-delivery-method\/\">Continue reading <span class=\"screen-reader-text\">You Can\u2019t Treat Construction Claims Like Your Grandkids<\/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":[11015,9],"tags":[9895,188,224],"class_list":["post-900078","post","type-post","status-publish","format-standard","hentry","category-construction-claims","category-construction-contracts","tag-advise-consult","tag-construction-claims","tag-construction-contract","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>You Can\u2019t Treat Construction Claims Like Your Grandkids - Advise &amp; 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