An Explanation For The Decline In Design-Bid-Build

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Law360
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A recent opinion of the Court of Special Appeals of Maryland signals the continuation of the economic loss rule in construction cases in Maryland, while simultaneously underscoring some possible reasons for the declining popularity of design-bid-build construction contracts.

In Balfour Beatty Infrastructure Inc. v. Rummel Klepper & Kahl LLP, Case No. 496, September Term, 2014, 2016 Md. App. LEXIS 3 (Md. Ct. Spec. App. Jan. 28, 2016), the intermediate appellate court held that the economic loss rule applied to bar three tort claims brought by a general contractor against a design engineering firm to recover alleged damages arising from problems in the design of two projects related to upgrades at Baltimore City’s Patapsco Wastewater Treatment Plant.

Click here to read the article written by Michael Halaiko and Glenn Gordon.