Steve Holloway is a licensed California General Contractor. He has served as the Construction Contractor Standard of Care Expert on several dozen cases. The applicable performance standards on these negligence claims were those for a licensed contractor or construction manager working in a particular state on a specific type and size of project. A trier of fact will often require testimony by an expert. Steve Holloway has provided testimony on a general contractor’s and construction manager’s performance in carrying out their duties.
Contractor Standards
Unique among these cases was where the owner argued that the general contractor had failed to fulfill its higher duties. The argument was made for both custom form and standard form contracts. These include AIA Guaranteed Maximum Price and Cost-Plus contracts. The argument was that the AIA Standard Form contract language raises the bar for the General Contractor in terms of its duties to the Owner.
Industry experts agree that the relationship between a general contractor and owner can be unbalanced. The contractor is experienced in cost-plus contracting, but the owner is not. As a result, the contractor can dominate key financial aspects of the contract.
Under AIA Form A111 Article 3, the argument was that the contractor accepts a relationship of trust and confidence established between her and the Owner. The contractor covenants with the Owner to furnish her best skill and judgment and cooperate with the Architect to further the Owner’s interests. She agrees to provide efficient business administration and supervision. She also agrees to use her best efforts to furnish adequate workers and materials. He also agrees to perform the work in the best and most expeditious and economical manner consistent with the Owner’s interests.
Suppose such a relationship exists between a contractor and an owner. In that case, the owner has a right to rely upon the contractor to reasonably and prudently manage the object of the owner’s interest. The owner’s primary, if not exclusive, interest is the project’s timely completion at or below the GMP budget.