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Instructor's Manual to Accompany Project Management for Engineering and Construction 2nd Edition by Oberlender
Edition 2ISBN: 978-0072328882Instructor's Manual to Accompany Project Management for Engineering and Construction 2nd Edition by Oberlender
Edition 2ISBN: 978-0072328882 Exercise 2
Give examples of problems that may arise when a contractor fails to perform his or her work in accordance with the contract documents.
Explanation
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- The owner may be forced to call the performance bond, which can delay the project and/or increasecosts because a new contractor will have to complete the project.
- The owner may file claims against the contractor for default of contract, which can cause expensive legal problems for the contractor and hurt the contractor's reputation.
- The contractor may be disqualified from bidding future work of the owner, and the designer may discourage other owners from allowing the contractor to bid on the designer's work.
- The bonding capacity of the contractor may be reduced, or completely eliminated, by the bonding company.
- Additional costs and time are required by the owner and designer as they attempt to complete a project that is in default by the contractor.
- The quality of the project may be impaired if another construction contractor must be brought on board to properly redo the defaulting contractor's work
- Adverse publicity may impair the reputation of the construction contractor, which can adversely affect the success of the contractor in securing future work.
- The owner may file claims against the contractor for default of contract, which can cause expensive legal problems for the contractor and hurt the contractor's reputation.
- The contractor may be disqualified from bidding future work of the owner, and the designer may discourage other owners from allowing the contractor to bid on the designer's work.
- The bonding capacity of the contractor may be reduced, or completely eliminated, by the bonding company.
- Additional costs and time are required by the owner and designer as they attempt to complete a project that is in default by the contractor.
- The quality of the project may be impaired if another construction contractor must be brought on board to properly redo the defaulting contractor's work
- Adverse publicity may impair the reputation of the construction contractor, which can adversely affect the success of the contractor in securing future work.
Instructor's Manual to Accompany Project Management for Engineering and Construction 2nd Edition by Oberlender
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