New York State Appoints Bridge Design Aesthetic Team to Review Tappan Zee Bridge Bids

The Governor of the State of New York announced today that a team of artists and designers has been appointed to review and provide recommendations concerning the evaluation of bids submitted by three design-build ventures for the replacement of the Tappan Zee Bridge. The Members of the Bridge Design Aesthetic Team include: Jeffrey Koons, Artist; Richard Meier, Architect; Thomas P. Campbell, Director of The Metropolitan Museum of Art; Alison Spear, Architect; Keith Brownlie, Bridge Designer; and Thomas Wermuth, Director, Hudson River Valley Institute and Vice President of Academic Affairs and Dean of Faculty, Marist College.

The full review team consists of over 35 additional professionals including government officials, community representations, local officials as well as technical advisors representing various disciplines including geotechnical, infrastructure, construction estimating, construction management, planning, environmental, financial, structural, transportation and traffic, roadway, public relations, and legal.

The review team is to make recommendations to the Governor that can include recommendation of one of the bids, authorize negotiations with one or more bidders, or authorize a request for a best and final offer from one or more bidders.

The biographies of all review team members can be found here.

Court Holds A $500,000 SIR Fails To Comply With Insurance Requirements

A trial court in New York recently was faced with questions concerning the amount of damages a contracting party, Citibank, was entitled to because of the failure of its contractor to procure insurance. (See Spector v. Cushman & Wakefield, 2012 N.Y. Misc. LEXIS 2794; 2012 NY Slip Op 3155U (Sup. Ct. N.Y. Co.)) Citibank sought all expenses incurred in connection with an underlying personal injury action, i.e., the amount of any settlement or judgment and reasonable attorneys’ fees, because Citibank was a self-insured party. In addressing damages, the court noted that New York’s highest court has held that, where a party intended to be insured by its contractor has its own insurance nonetheless, the measure of damages is limited to out-of-pocket expenses such as premiums and any additional costs incurred, including deductibles, co-payments and rate increases in the party’s insurance. (Inchaustegui v. 666 Fifth Avenue Limited Partnership, 96 N.Y.2d 111, 725 N.Y.S.2d 627 (2001)) However, that decision acknowledged that where the party was left uninsured, it could recover “the full amount of the underlying tort liability and defense costs.” (Id. at 114) In this recent June 2012 trial court decision, the court granted Citibank’s summary judgment motion for defense costs because it was self-insured.

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Owner’s Claim For Defective Work Tripped Up By AIA’s Notice Of Claim Requirement

Notice of claim requirements in construction contracts are standard and often the cause of bad news to contractors pursuing claims for additional costs. However, these clauses can be, though not always, two-way streets. As a reminder to owners that notice of claim requirements under the AIA General Conditions apply equally to owners as to contractors, a trial court in New York recently dismissed a claim for defective work against a plumbing contractor because it was not the subject of a previous notice of claim.

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New York State Court Voids Project Labor Agreement Requirement On DOT Project – Orders Re-Bid

A New York State court judge in Albany rejected a Department of Transportation (DOT) requirement of a Project Labor Agreement (PLA) on a highway project on Route 17 in the Town of Wallkill, Orange County. In an Article 78 proceeding, which challenges the determinations of a public administrative agency, a non-union low bidder on the DOT project, who refused to enter into a PLA negotiated by the DOT and made a part of the bid documents, challenged the award which ignored its bid and went to the second bidder at an added cost reported to be $4.5 million. Because the DOT failed to demonstrate that the use of the PLA advanced the interests of the State’s public bidding statutes, the petition was granted. Barring an appeal, which is expected, the DOT will be required to re-bid without the PLA requirement.

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The opinions expressed on this blog are those of the author and are not to be construed as legal advice.

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