Smith, Currie and Hancock's Common Sense Construction Law: A Practical Guide for the Construction Professional

900 Pages·2014·5.32 MB·English

by  John M. Mastin

Smith, Currie & Hancock’s
COMMON SENSE
CONSTRUCTION LAW:
A Practical Guide for the
Construction Professional

Smith, Currie & Hancock’s
COMMON SENSE
CONSTRUCTION LAW:
A Practical Guide for the
Construction Professional
FIFTH EDITION
Edited by
Thomas J. Kelleher, Jr., John M. Mastin, Jr., and
Ronald G. Robey
CHAPTEREDITORS
PhilipE.Beck VianneyLopez
JamesK.Bidgood,Jr. S.ElyshaLuken
ErnestC.Brown JohnM.Mastin,Jr.
JamesF.Butler,III JonathanR.Mayo
DanielM.Carrico GarrettE.Miller
NicholasH.Ceavers EricL.Nelson
JosephJ.Dinardo StevenL.Reed
RichardW.Goeken RonaldG.Robey
DanielJ.Greenberg CharlesE.Rogers
AdamF.Haimo LochlinB.Samples
EugeneJ.Heady JosephC.Staak
ToddM.Heffner StevenJ.Stuart
KathleenY.Hsu CharlesW.Surasky
TimothyW.Johnson DouglasL.Tabeling
KirkD.Johnston GeorgeD.Wenick
S.GregoryJoy BrianA.Wolf
StephenJ.Kelleher JosephR.Young
ThomasJ.Kelleher,Jr.
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LibraryofCongressCataloging-in-PublicationData:
Smith,Currie&Hancock’scommonsenseconstructionlaw:apracticalguideforthe
constructionprofessional.—Fifthedition/editedbyThomasJ.Kelleher,Jr.,RonaldG.Robey,
andJohnM.Mastin,Jr.
pagescm
Includesindex.
ISBN978-1-118-85810-3(cloth);978-1-118-85809-7(ebk.);978-1-118-85815-8(ebk.)
1.Constructioncontracts—UnitedStates.2.Constructionindustry—Lawandlegislation–United
States.
I.Kelleher,ThomasJ.,editor.II.Robey,RonaldG.,editor.III.Mastin,JohnM.,editor.IV.Smith,
Currie&Hancock.V.Title:Smith,CurrieandHancock’scommonsenseconstructionlaw.VI.Title:
Commonsenseconstructionlaw.
KF902.S632015
343.7307′8624—dc23
2014034438
PrintedintheUnitedStatesofAmerica
10 9 8 7 6 5 4 3 2 1
Inthefirsteditionof CommonSenseConstructionLaw,werecognized
OvertonA.CurrieandLutherP.House,Jr.,fortheirleadershipand
mentoringofthefirmanditsconstructionlawpractice.Consistent
withthetraditionestablishedbythefoundersofthisfirm,we
dedicatedthesecondeditionof CommonSenseConstructionLaw
toourclients,whoseconfidenceandtrustwillalwaysbeessentialtoourpractice
andsuccess.Inthethirdeditionof CommonSenseConstruction
Lawwerecalledthefondmemoriesofourdeceasedpartners,
G.MaynardSmith(1907–1992),E.ReginaldHancock(1924–2004),
andBertR.Oastler(1933–2002),whodevotedtheirprofessional
livestothepracticeofourprofessionatthehighestlevelof
excellenceandsetthestandardforfuturegenerationsoflawyers
inthefirm.Inthefourtheditionofthisbook,wehonoredtheremarkablelife
andachievementsofOvertonA.Currie(1926–2005).Without
him,thepracticeofconstructionlawasitexiststodaywould
notbenearlyasdefined.Overtonwastrulyagiantin,
andleftanindeliblemarkupon,theconstruction
industryandourfirm.
Inthisfifthedition,wehonoradditionalpartners
whohavededicatedtheirprofessionalcareerstotheir
clientsbypracticingatourfirm,TomAbernathyandPhilFortune.
Wealsorememberandacknowledgetheoutstandingcontributions,personal
courageandfaithofourpartner,AubreyL.Coleman,Jr.(1942–2014).Therewill
neverbeabetterconstructionattorney,partner,ormentor.Finally,thisisthe
fiftheditionof Smith,Currie&Hancock’sCommonSenseConstructionLaw.
AllfivewereeditedbyTomKelleherassenioreditor.Themassivecollectionof
knowledgeandyearsofhardworkrepresentedbythesebooksstandasa
testamenttoTom’sscholarship,diligence,anddedicationto
advancingthepracticeofconstructionlaw.

CONTENTS
Preface xxvii
AuthorBiographies xxix
1 TheLegalContextofConstruction 1
I. Introduction / 1
II. ContractLaw / 1
A. WhatIsaContract? / 1
B. BreachofContract / 2
C. ImpliedContractObligations / 2
III. EvolutionofConstructionLaw / 4
IV. Torts / 5
A. IntentionalTorts / 5
B. Negligence / 6
C. StrictLiability / 7
V. StatutoryandRegulatoryLawsAffectingtheBusiness
ofConstruction / 8
A. Overview / 8
B. GrowingEmphasisonBusinessIntegrity / 9
2 InterpretingtheContract 12
I. TheImportanceofContractInterpretation / 12
II. WhatIsa“Contract”? / 12
III. TheGoalofContractInterpretation / 13
IV. DefiningContractTerms / 14
A. TermsDefinedbytheParties / 14
B. TechnicalTerms / 14
C. GenerallyAcceptedDefinitions / 15
V. InterpretingtheContract’sWording / 15
A. TheContractMustBeConsideredasaWhole / 15
B. SpecificTermsversusGeneralTerms / 15
vii
viii CONTENTS
C. Handwritten,Typed,andPreprintedTerms / 16
D. Order-of-PrecedenceClauses / 16
VI. TheFactsandCircumstancesSurroundingContract
Formation / 17
A. DiscussionsandConduct / 17
B. TheParties’PriorDealings / 18
C. IndustryCustomandUsage / 18
D. LimitationsontheUseofFactsandCircumstances
SurroundingtheContract / 19
VII. ResolvingAmbiguities / 20
A. ConstruingtheContractagainsttheDrafter / 20
B. DutytoRequestClarification / 21
VIII. ImpliedContractualObligations / 21
A. DutyofGoodFaithandFairDealing / 22
B. DutytoCooperate / 22
C. WarrantyofPlansandSpecifications—TheSpearin
Doctrine / 24
IX. ContractualObligationsArisingbyOperationofLaw / 26
3 AlternativeContractingMethods 28
I. TraditionalApproachtoConstruction:Advantages
andDisadvantages / 29
II. MultiprimeContractingandFast-Tracking / 30
III. ConstructionManagement / 32
A. AgencyConstructionManagement / 33
B. ProgramManagement / 34
C. ConstructionManager/GeneralContractor / 34
IV. Design-BuildContracting:WhatWorkstoAvoidDisputes / 36
A. TheDesign-Builder’sPerspective / 36
B. TheOwner’sViewpoint / 38
C. TheSuccessfulDesign-BuildProject / 43
D. DesignProfessionalLiabilityIssuesinaDesign-Build
Project / 43
E. ExtendingDesign-Build—EarlyContractor
Involvement / 44
F. ExtendingDesign-Build—EnergySavingsPerformance
Contracting / 45
V. Design-BuildAspectsofTraditionalConstruction / 46
A. PerformanceSpecifications / 46
B. ShopDrawings / 47