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Owner's Failure To Protect Against Defects Caused Delay

Sunday, January 01, 2012 09:46 am

 

No Damage for Delay

G&T Conveyor Co., Inc. v. Allegheny County Airport Auth., 2011 U.S. Dist. Lexis 123156 (W. D. Pa. Oct. 25, 2011)

In Pennsylvania, a no-damages-for-delay provision is invalid where the owner interfered with or failed to act "on some essential manner necessary to the prosecution of" the work. James Corp. v. N. Allegheny Sch. Dist.,938 A.2d 474, 484 (Pa. Cmwlth. 2007).

Under a construction contract executed with Allegheny County Airport Authority (ACAA), G&T Conveyor Company (G&T) agreed to construct a baggage handling system at the Pittsburgh International Airport. Though the contract contained a no-damages-for-delay clause that limited ACAA's liability, a court ruled that clause did not bar G&T's claim for $173,000 in damages incurred during a 28-day delay.

According to G&T, the delay occurred when the U.S. Transportation Safety Administration (TSA) prematurely terminated testing of the baggage handling system because of a defect in the explosive detection devices (the CTX). Although the contract required G&T to install the CTX, it required TSA to provide them. Therefore, G&T claimed that any defect in the detection devices was beyond its control. G&T presented testim [...]

 
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