Legal Questions

Legal Questions

1-Your employer is disputing whether it (the general contractor) ….

Disputes over construction matters in particular ought to lend themselves, Typically small projects are neither completely detailed nor are they run on any recognizable "fast track" basis. Accordingly, the plans that are given to the contractor are generally "final" but leave a lot of discretion to the builder (whether intentionally or unintentionally). In any event, the owner has no intention of paying for any design modifications with regard to essentially "field run" undetailed items such as the electrical wiring or heating, ventilation and air-conditioning system. Most contracts for such projects contain a clear and unequivocal change order provision as in the AIA standard forms. The terms of that provision seem to be followed more in the breach than otherwise on such projects. Accordingly, when it comes time to settle up, the issue of whether or not the documentation exists to justify an adjustment in contract price becomes very important. Because arbitration does not strictly adhere to the rules of evidence, much leeway in proving the claim is given to a contractor seeking to recover even though s/he has not adhered to the covenants by which s/he agreed to be bound. Accordingly, when it comes time to settle up, the issue of whether or not the documentation exists to justify an adjustment in contract price becomes very important. Because arbitration does not strictly adhere to the rules of evidence, much leeway in proving the claim is given to a contractor seeking to recover even though s/he has not adhered to the covenants by which s/he agreed to be bound.

2.-You have a business specializing in structural engineering and you have a friend …….

Whenever bidders at an auction are aware of the identity of the other bidders there is a risk that they will form a "ring" and thus manipulate the auction result, a practice known as collusion. Referring to the scenario it will be a criminal act by agreeing to bid only against outsiders, never against members of the "ring", competition becomes weaker, which may dramatically affect the final price level. After the end of the official auction an unofficial auction will take place among the "ring" members. The difference in price between the two auctions will then be split among the members. On the opposite side, the owner of the object being auctioned may increase competition by taking part in the bidding himself (but drop out of the bidding just before the final bid).(Ref. Spur Indus vs. Del. E 1972)

3. Black, Brown and White were partners and carried on a small business manufacturing precast-concrete products,

Ans. It's a contract between the parties and any change without any of the parties missing deliberately or indeliberately will cause frustration to the contract Ref. Fujitsu v. Federal Express 1998



4. The owner, his architect and the prime contractor have had a number of disputes …

Ans. Dispute resolution and avoidance programs have proven effective throughout the construction and capital facilities ...