| INSURANCE ISSUES IN CONSTRUCTION DEFECT CASES |
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| Contractors usually protect themselves from liability to third parties by purchasing general liability insurance policies. General liability insurance policies protect the contractors from damages for accidental bodily injury or for property damage. Most general liability insurance policies contain exclusions for damages as a result of the contractors' own work or products. More... |
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| Act of God as a Contractor's Defense |
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| An owner may allege breach of contract against the builder with respect to the performance, or lack thereof, of the construction contract. As a defense, the builder may claim the impossibility of performance based on an act of God. Additionally, the act of God defense can be utilized on a builder's behalf to show that a delay in performance was excusable. More... |
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| Bankruptcy of Owner and its Ramifications on Construction Project |
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| When the owner of a construction project files for bankruptcy, all participants on the project will feel the effects. Usually, the owner will seek to complete the project utilizing the bankruptcy tools at his disposal. Owners reorganizing under Chapter 11 can assume beneficial executory contracts or unexpired leases and reject others. More... |
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| Government Procurement and the Competition in Contracting Act of 1984 |
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| The Competition in Contracting Act of 1984 (CICA) provides for the fair procurement of government contracts by mandating "full and open competition" among soliciting contractors. This means, all responsible prospective contractors are allowed to submit sealed bids or proposals for the procurement of the government contract. When a bid protest is initiated, the CICA protects the contractor by generally staying the agency's ability to award the contract until such time as the dispute is resolved. More... |
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| Contract Modification Versus a Cardinal Change |
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| Contract modifications and cardinal changes are separated by degree. In the construction industry, contract modifications are quite common and basically consist of minor or slight changes to the parties' existing agreement within the scope of such agreement. A cardinal change is so severe as to be beyond the scope of the existing agreement such that an entirely new contract, with all the attendant formalities, is required. More... |
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