Question

Assume that the general contractor during the contract bidding phase notices a critical element of the wall section detail for the building is omitted. Further assume, the general contractor knows that the missing element is necessary for a successful project, required by code and will increase the cost of the project. The general contractor with knowledge of the error fails to disclose it or raise any question or request for information and bids the project believing they will be entitled to a hefty change order by raising it later. Explain how the law, ethics and morality combined with the terms of the AIA A201 General conditions should treat the General Contractor’s request for a change order for the cost of installing the missing element.

Answer 1

Ethically and morally it was duty of general contractor to ask the aithorities about the miasing element after knowing about that. General contractor even after having knowledge about missing part or element and its essentiallity in project did not raise any query and simply filled the bid assuming a change in order during execution of work. He should not have done it. He should have raised question about missing element so that authorities could take necessary action for same.

Further, by law as it was mistake of tender issuing authorities that they missed an essential element for completion of project therefore the general contractor is liable and entitled to have a change in order as he have bidded only as per format and the details given by the authorities in bid documents.

Therefore, morally and ethically contractor did wrong but as per law he is entitled to get an change in order and authorities have to issue the same for cost of installing the missing element.