An Administrator's Guide to California Private School Law

Chapter 17 – Construction

 Back charges, including a description of the item for which payment is being withheld, the amount of the withholding at 100 percent, and the date of the withholding;  Damage or destruction to property of the school or third parties, including a description of the damage or destruction of property, the date the damage or destruction occurred, the party who owns the property, and the actual or estimated amount of damage;  Incomplete punch list items, including a description of the specific item, the estimated cost for each such item, and the amount withheld on each item at 150 percent;  School’s liquidated damages, including a description of the dates for which liquidated damages are being withheld, the amount being withheld, and evidence to support the amount being withheld; and  Other withholding of payments authorized by the contract documents or by statutes.

The school should keep all these supporting documents in an orderly fashion. The school should also keep an original or copy of the fully executed construction contract and any approved change orders in an organized and easy-to-access manner.

Section 9 E VALUATING A ND H ANDLING D ISPUTES B EFORE A ND D URING C ONSTRUCTION A dispute may arise during any stage of a construction project. When a dispute does arise, it is important for the school to analyze and understand the situation and the nature of the dispute and consult with appropriate professionals and legal counsel. The school’s goal is to arrive at an effective resolution of the dispute while not delaying or increasing the cost of the project. A. D ISPUTES W ITH C ONTRACTOR B EFORE C ONSTRUCTION A school may encounter problems with a contractor even before the first shovel hits dirt. For example, the contractor may refuse or fail to execute the contract, or to provide the required payment bond, performance bond, or insurance coverages. When problems arise before construction commences, the school’s rights and remedies against the contractor likely depend on the bid, contract, or other pre-construction documents. If a contractor refuses to perform, it may be liable for the difference between the amount of its bid and the actual cost to the school for performance of the work. 2375 The school may be able to seek quantifiable damages or demand that the contractor defend and indemnify the school from any subcontractor claims.

An Administrator’s Guide to California Private School Law ©2019 Liebert Cassidy Whitmore 579