Construction SuperConference 2017

E34 Guarding the Gate (Room Chopin 4)

A project contractor often faces claims from subcontractors and sub-consultants for which the owner may be ultimately liable. If the contractor does not pass these claims through to the owner, then it may have to absorb the risk of loss in the event the claims are ultimately found to be valid. But, the contractor may face even greater risks if it passes through claims that it hasn’t adequately vetted, particularly when a federal project is involved. This panel will look at the contractor’s legal and contractual obligations in passing through claims to a project owner. The panel will address the contractor’s due diligence responsibilities in reviewing claims and determining those claims that may be passed through, as well as claim certification and the obligation and potential liability in certifying claims to an owner. Finally, the panel will look at some practical methods for reviewing and pursuing pass through claims.

Upon completion of this session, participants will be able to:

  • Understand their legal obligations and responsibilities to the owner to review, evaluate, and opine on a subcontractor's claim prior to passing it through.
  • Understand their responsibilities to the subcontractor to pass through claims to the owner.
  • Understand the risks associated with either passing through claims that are unjustified or failing to pass through claims with merit.