A DESIGN PROFESSIONAL'S DUTIES TO CONSTRUCTION WORKERS

Although a design professional does not enter into contracts with construction workers, which workers generally are employed by contractors or subcontractors, the design professional may be responsible for damages if the workers are injured on a construction project. The design professional's responsibility with regard to the workers generally depends upon whether the design professional had the ability to stop the construction project or had the ability to reject work that was being performed on the construction project.

Homeland Security and Construction Contracts

The Department of Homeland Security (DHS), by reason of its status as an executive agency, is subject to the government contract procurement provisions of the Competition in Contracting Act of 1984 (CICA) that mandates full and open competition. However, the DHS has been given certain contracting authority outside the CICA for altering the usual procedures for procuring executive agency contracts.

AN OWNER'S RIGHT TO STOP & TO COMPLETE WORK

An owner who is involved in a construction project has certain rights under his or her contract with a contractor. One of the owner's rights in a construction project is the right to stop work on the construction project. This right is similar to the owner's right to terminate the contract for breach of contract by the contractor.

LIQUIDATED DAMAGES UNDER FEDERAL CONSTRUCTION CONTRACTS

Liquidated damages are damages that are specified in a construction contract in the event of a default under the contract. The federal government usually includes clauses in the contract regarding liquidated damages when time is of the essence under the contract, when the government would be damaged by any delay in the contemplated completion date, and when the amount of damages would be difficult to ascertain.

Retainage, In General

A retainage is a portion of the payment owed to a contractor that is withheld by the owner. The retainage amount is usually comprised of a pre-established percentage of the amount earned and due to the contractor. The construction contract will provide the details as far as percentage retained and retainage procedure.