GBA Case History Series – Case History #13 - Litigation For Collections...A Lose-Lose Scenario

Summary

The Member Firm provided two oral proposals for geotech studies to the architect for a 10-story building – one assuming spread footings beneath the one-story basement while the other proposed deeper borings for possible deep foundations. The owner authorized the former and the firm provided appropriate recommendations plus mentioned an alternative for deep, drilled-and-underreamed piers to potentially save money although excavation and construction problems might develop. Construction of deep drilled piers began and caving problems developed requiring multiple but smaller piers for which the owner suggested the Member Firm help with the additional costs. The Member firm pushed back and the owner dropped the issue. Months later, the same owner began a second project and after submitting the geotech report, the owner went silent. The Member Firm filed a claim against the owner to collect their fee and the owner, in response, filed a claim against the Member Firm for negligence on the first project. The Member Firm and owner settled with the owner accepting “defense costs” and paying the Member Firm their fee.

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:

Do Not Submit Oral Proposals
Do It Right or Don’t Do It at All
Insist on Effective Communications
How Dare They! Does Not Apply
Professional Firms Should Respond Professionally
Don’t Rely on Others to Protect You
Use the “Confirmation-Dependent Recommendations” Label When Appropriate
Do Not Sue a Client to Collect Money Owed

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