Changes, Design Deficiencies & Owner Maladministration

     Changes are the classic source of construction disputes. The name partners of Conway & Mrowiec have represented clients who faced changes and design deficiencies of an extreme nature. In addition to causing delays and reduced labor productivity, the changes in these cases presented special complex issues regarding contract interpretation, Owner's implied warranty of design, the scope of Owner's right to make changes, Owner's maladministration of the changes process, prompt and complete correction of design errors and omissions, "cardinal change," P&ID revisions, shop drawing revisions, post-Substantial Completion changes, "value engineering", material breaches, the cumulative impact of changes, the indirect cost of changes, cost accounting, contractual clauses of Owner's decisions as "final and binding," Contractor's duty to review plans, "intent is to provide all items necessary," requirement of written change orders, change order mark-up as ceiling on overhead recovery, order of precedence, notice provisions and effect of the change order documentation itself.

These cases include:



  Project: Office, Shop & Storage Facilities, Stickney, Illinois
  Description: Litigated for general contractor's $8 million claims of delay, acceleration, disruption and change order processing/overhead costs in federal court and defended public owner's liquidated damages and alleged incomplete work counterclaims of $3 million on originally $53 million project plagued by 700+ change orders
  Year: 1997-99
  Legal Issues: Contractual defenses of "no damages for delay"
Notice
Owner's decisions as "final and binding"
Change order percentage mark-up as ceiling on overhead
  Technical Issues: Cumulative Impact of Change Orders
Indirect Costs of Changes
Concurrent Delay
Mechanical System Design
Construction Sequencing
Resource Leveling
Cost Accounting
  Outcome: After discovery complete, defeated owner's motion for summary judgment. "No damages for delay," notice and "final and binding" held not applicable. Settled week before trial for recovery to general contractor and subcontractors of $6.25 million, 596 day time extension and release of owner's counterclaims. When combined with 1995 settlement, general contractor's total recovery was $13 million, 1,196 days time extension and no recovery to owner
  Attorney: John S. Mrowiec

 




  Project: Metropolitan Water Reclamation District of Greater Chicago, Office Shop & Storage Facilities
  Description: Federal court litigation of claim of general contractor seeking to terminate because of project delays on $53 million project
  Year: 1994-95
  Legal Issues: Delay
"No Damages for Delay"
Notice
Owner's Decision as "Final and Binding"
Cardinal Change
Differing Site Conditions
  Technical Issues: Fire Protection Design
Foundation Design
Curtainwall Design Scheduling
  Outcome: After discovery, defeated owner's motion for summary judgment resulting in settlement of $6.75 million and 600 day time extension. "No damages for delay" clause held inapplicable; owner had duty to process changes and time extension requests in good faith. When combined with later 1999 settlement, general contractor's total recovery was $13 million and 1,196 days time extension
  Attorney: John S. Mrowiec

 




  Project: Bradley Center Arena, Milwaukee, Wisconsin
  Description: Trial of mechanical contractor's acceleration, reduced labor productivity and consequential damages (lost profits on collateral contracts) claims against owner and construction manager on National Basketball Association arena
  Year: 1992
  Legal Issues: Acceleration
Reduced Labor Productivity
notice
Foreseeability of Consequential Damages
  Technical Issues: Scheduling
Weather Impact on Productivity
Trade-Stacking Impact on Productivity
Measurement of Damages to Other Contracts
  Outcome: Obtained multi-million dollar jury verdict for trade contractor after six-week trial with consequential damages exceeding direct damages; verdict upheld on appeal
  Attorney: John S. Mrowiec

 




  Project: Museum of Science & Industry, Chicago
  Description: Prepared and litigated general contractor's claims of delay, acceleration, reduced labor productivity and disputed change orders and defended against owner's liquidated damages counterclaim
  Year: 1997-98
  Legal Issues: Acceleration
Notice
Contractor's Duty to Review Plans
Familiarity with Local Conditions
Intent is to Provide All Items Necessary
Means and Methods
Completion Date as Reasonable
Requirement of Written Change Orders
  Technical Issues:
  Outcome: After denial of owner's motion to dismiss on contractual defenses, settled favorably to general contractor
  Attorney: John S. Mrowiec

 




  Project: Liquid Hydrogen Plant, McIntosh, Alabama
  Description: Preparation and prosecution of process piping design/builder's $1.5 million extended duration, reduced labor productivity and unpaid change order claim against owner and subcontractor designer (separate time periods)
  Year: 1995
  Legal Issues: Delay
Causation
  Technical Issues: Scheduling
Field Welding
P&ID Revisions
  Outcome: Negotiated favorable settlement agreements for payments of damages to design/builder from both owner and subcontractor designer without litigation
  Attorney: John S. Mrowiec

 




  Project: Pulp and paper mill, Courtland, Alabama
  Description: Prepared and prosecuted $1.6 million extended duration, acceleration and reduced labor productivity claim in federal court litigation
  Year: 1994
  Legal Issues: Delay
Notice
  Technical Issues: Scheduling
Labor Productivity Measurement
  Outcome: Settled favorably for $1.25 million before commencement of discovery
  Attorney: John S. Mrowiec

 




  Project: Butyllithium Plant, New Johnsonville, Tennessee
  Description: Prosecution of reduced labor productivity claim on behalf of process piping contractor on $3 million expansion
  Year: 1994
  Legal Issues: Reduced Labor Productivity
Notice
  Technical Issues: Piping Design
Scheduling
Productivity Measurement
  Outcome: Settled favorably to piping contractor without litigation
  Attorney: John S. Mrowiec

 




  Project: Meadow Mews Townhomes, Tinley Park, Illinois
  Description: Prosecuted remedial contractor's claim for payment on project requiring underpinning of townhomes. In addition to the scope of work issues, the mechanics lien foreclosure lawsuit involved all 34 townhome owners and their lenders
  Year: 1995
  Legal Issues: Delay
Payment Claims
Defective Work
  Technical Issues: Scope of Work
  Outcome: Recovery to contractor
  Attorney: Timothy R. Conway

 




  Project: Motel, South Carolina
  Description: Defended environmental engineer against errors and omissions claim by lender who accused engineer of failing properly to perform Phase I environmental assessment
  Year: 1995-96
  Legal Issues: Delay
Payment Claims
Defective Work
  Technical Issues:
  Outcome: Settled favorably
  Attorney: Timothy R. Conway