In an article published in the APPA blog on January 28, Judah Lifschitz and Dan Kapner provide insight on understanding and managing power project contractor claims.
Construction claims are not uncommon on public power projects. Therefore, owners of public power projects must have a fundamental understanding of which claims contractors are most likely to assert. On public power projects, the most common contractor claims are delay, acceleration and loss of efficiency.
Lifschitz and Kaplan provide details on each of these claims and outline the types of damages that may be sought from the contractors – actual or compensatory damages, incidental damages, liquidated damages, nominal damages, consequential damages and punitive damages – noting that contracts typically do, and in most cases should, contain mutual waivers of consequential and punitive damages.
Owners are best equipped to avoid contractor claims, or adequately manage them, when their contracts contain several necessary provisions, including notice, substantiation and certification, audit, offsets, mechanics liens, schedule specification, and disputes procedure.