00488270

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It frequently happens during the course of performance of highway construction contracts that situations not contemplated by the contracting parties arise, and, as a result, changes in the contract are required in order that the work may be carried out in a proper and efficient manner. The standard highway construction contract almost always contains provisions designed to meet such emergencies. Guidelines for such provisions are contained in the AASHTO "Guide Specifications for Highway Construction", which are presented in an appendix to this paper. A clause frequently included in construction contracts requires the contractor to give written notice of intention to make claim for additional compensation for extra work prior to commencement of the work on which the claim is based, and provides for forfeiture of the claim in the event such written notice in not given in advance of commencement of the work. It is the purpose of this paper to examine under what circumstances the provisions of the clause, including forfeiture, will be enforced, and under what circumstances the same will not be given force and effect by the courts. Because the body of case law that is squarely in point is somewhat limited in size, consideration is given to a related body of case law, substantial in size, that is fully germain and yields valuable instruction as to when the forfeiture provisions of the clause will be strictly enforced, and, under what circumstances, the State will be held to have waived the requirement of notice and be estopped to assert the penalty of forfeiture for noncompliance.

Page range: 1524-N1 through 1524-N30.

Addendum 4

30 p.

1988-6

Selected Studies in Highway Law

0-309-02434-X

Appendices (1)

Compliance; Contracts; Employee compensation; Guidelines; Highway law; Insurance claims; Law enforcement; Legal documents; Loss and damage claims; Penalties; Road construction; Specifications

Change; Compensation; Forfeiture; Requirement

Administration and Management; Highways; Law; Security and Emergencies; I10: Economics and Administration

TRIS, TRB

Sep 30 1989 12:00AM

• COMPETITIVE BIDDING AND AWARD OF HIGHWAY CONSTRUCTION CONTRACTS: SUPPLEMENTARY MATERIAL
• INDEMNIFICATION AND SURETYSHIP IN HIGHWAY CONSTRUCTION CONTRACTS: SUPPLEMENTARY MATERIAL
• LEGAL IMPLICATIONS IN THE USE OF PENALTY AND BONUS PROVISIONS OF HIGHWAY CONSTRUCTION CONTRACTS: THE USE OF INCENTIVE AND DISINCENTIVE CLAUSES AS LIQUIDATED DAMAGES FOR QUALITY CONTROL AND FOR EARLY COMPLETION
• LIABILITY FOR DELAY IN COMPLETION OF HIGHWAY CONSTRUCTION CONTRACT: SUPPLEMENTARY MATERIAL
• LICENSING AND QUALIFICATION OF BIDDERS: SUPPLEMENTARY MATERIAL
• MINORITY AND DISADVANTAGED BUSINESS ENTERPRISE REQUIREMENTS IN PUBLIC CONTRACTING