Follow the formula
Article Abstract:
The lawsuit filed by Worcester Bros Co. against the Fairfax County Redevelopment and Housing Authority illustrates how difficult sometimes it may be in using the Eichleay formula for computing unabsorbed home office expenses incurred by contractors. Several cases have held that the formula can only be used if the government was responsible for the suspension or delay of work. Contractors should also prove that they were not able to work during the suspension or delay. They are advised to monitor the issue in their states and find out if the formula is recognized in their states.
Publication Name: Civil Engineering
Subject: Science and technology
ISSN: 0885-7024
Year: 1999
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Court rules against subcontractors in contingent payment clause dispute
Article Abstract:
Pay-if-paid clauses in construction contracts are generally controversial because they force subcontractors to assume a greater economic risk because if an owner does not pay the general contractor, the subcontractors usually cannot seek payment from the general contractor. The California Supreme Court in 'Clark Corp vs. Safeco Ins. Co' ruled that such clauses violate public policy by waiving subcontractors' mechanic's lien rights. However, the case of 'Printz Services Corp vs Main Electric Ltd' illustrates that pay-if-paid clauses can be enforced.
Publication Name: Civil Engineering
Subject: Science and technology
ISSN: 0885-7024
Year: 1998
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Enforceability of monetary caps for professional negligence
Article Abstract:
The case of the Borough of Tinton Falls vs. Marbro In. examines the issue of monetary caps on liabilities for alleged negligence. Fellow, Reeds & Associates was contracted by the borough to improve a local park. However, when the project unearthed large glass quantities rendering the park unusable, the borough sued FRA for negligence. The FRA argued that their contract with the borough limited its liability to $32,500 which the Superior Court of New Jersey ruled in favor of.
Publication Name: Civil Engineering
Subject: Science and technology
ISSN: 0885-7024
Year: 1997
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