GBA Case History Series – Case History #1 - Beware! A Friend's Small Project Can be Hazardous to your Firm's Health

Summary

The GBA member firm performed a preliminary geotechnical study to estimate foundation-construction costs for a small housing development. The project stalled and years later the developer sold the land with the geotechnical report to another developer. The new owner retained a different firm for a geotechnical study for the new project. When the new geotechnical firm identified problematic soils necessitating a deep foundation system, the new owner filed a $650,000 claim against the member firm alleging negligent misrepresentation. Adamant that the suit was unjustified, the member firm’s CEO finally acquiesced and accepted a $70,000 settlement offer from the new owner rather than risk the uncertainty of a jury trial.

Our Hosts:

Elizabeth Brown, PE - Principal Geotechnical Engineer/JLT Consultants

Elizabeth is the Principal Geotechnical Engineer at JLT Consultants in Boise, Idaho. Elizabeth has performed and/or assisted with numerous geotechnical investigations throughout Idaho, Oregon, Washington, and Wyoming managing projects, providing geotechnical design, project quality control, cost and value engineering, and evaluating geotechnical constructability issues.

Abi Corbett – Project Consultant/SME.

Abi is a Project Consultant at SME experienced in managing a variety of steel, concrete, coatings, and nondestructive testing projects. She specializes in managing projects related to DOT fabrication quality assurance reviews but also supports project managers throughout SME’s various service groups.

Lessons Learned:

Some Preliminary Studies Can Be Dangerous
Make a Study’s Limitations Clear
Use the Term “Confirmation-Dependent Recommendations”
Project Risk Is Inversely Proportional to Project Size and Complexity
Construction-Cost Estimates
Claims Are a Business Issue

Calls-to-action:

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This episode was produced by the following GBA Members:

Abi Corbett – Project Consultant/SME.
Elizabeth Brown, PE - Principal Geotechnical Engineer/JLT Consultants
Ryan White, PE, GE – Principal Geotechnical Engineer/Apex Companies, LLC