Arbitration Involving Construction Design Errors and Omissions

Arbitration concerning additional and unanticipated costs incurred by the builder of a new public transit line in Canada resulting from the Defendant’s design errors and omissions.

Our client, the Plaintiff, was awarded a fixed-price contract by the Government to be the Design-Builder of a new public transit line in Ontario. As part of its bid, our client subcontracted the Defendant to provide pre-award design services. The Defendant continued on as the design subcontractor after the contract was awarded. Our client claimed that the Defendant’s design errors and omissions caused it to incur additional and unrecoverable costs.

We prepared a report in which we estimated the Plaintiff’s losses under two different methodologies; one based on the actual incremental costs incurred and the other based on the increased bid price that would have been submitted absent the design errors and omissions. Our work included agreeing the costs to supporting documentation, testing the internal consistency of the claims, and estimating the markup on these costs that would have formed the basis for an increased bid.

We provided expert testimony at Arbitration and the matter settled before a decision was issued by the arbitrator.

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