The U.S. Court of Appeals for the Federal Circuit recently issued a decision that reinforces the boundaries of the government's liability for design defects in federal construction contracts using the design-build bridging project delivery method. In Balfour Beatty Construction v. General Services Administration, the court partially overturned a ruling by the Civilian Board of Contract Appeals (CBCA), finding that the bridging documents of the General Services Administration (GSA) contained design specifications that carried an implied warranty under the well-established Spearin doctrine.

Specifically, the court held that GSA was responsible for design defects relating to the thickness of the project's mat slab foundation. However, the court affirmed the CBCA's denial of claims related to ventilation requirements, concluding those were governed by performance specifications for which no design warranty applied. The decision serves as a critical reminder to contractors and government agencies alike about the legal consequences of ambiguous or incomplete design documents in federal construction contracts.

Reprinted courtesy of Keith E. Smith, Wood Smith Henning & Berman LLP and Domingo R. Tan, Wood Smith Henning & Berman LLP

Mr. Smith may be contacted at kesmith@wshblaw.com
Mr. Tan may be contacted at dtan@wshblaw.com