#45 - Case History - Small Projects Can Create Big Risk...Yet Again, and Again and Again...

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About this Episode

GBA Case History Series – Case History #45 - Small Projects Can Create Big Risk...Yet Again, and Again and Again...

Summary

A GBA Member Firm performed an environmental site assessment (ESA) for a commercial real estate developer. After the Member Firm reported the laboratory tests, which indicated unacceptable levels of a contaminant, the prospective purchaser reneged and demanded a return of its deposit. After getting a second ESA from another laboratory, the Member Firm reviewed the second laboratory’s results and agreed that the initial lab did not record the results correctly, and the contamination levels were not as severe. Both the developer and prospective purchaser sued the Member Firm who, in turn, sued the other laboratory. The Member Firm prevailed against the initial lab but recovered less than half the total amount of the settlement it reached with the developer and prospective purchaser.

Our Hosts:

Elizabeth is the Principal Geotechnical Engineer at JLT Consultants in Boise, Idaho. Elizabeth has performed and/or assisted with numerous geotechnical investigations throughout Idaho, Oregon, Washington, and Wyoming managing projects, providing geotechnical design, project quality control, cost and value engineering, and evaluating geotechnical constructability issues.

Abi is a Project Consultant at SME experienced in managing a variety of steel, concrete, coatings, and nondestructive testing projects. She specializes in managing projects related to DOT fabrication quality assurance reviews but also supports project managers throughout SME’s various service groups.

Lessons Learned:

  • Exercise Due Diligence When Hiring Chemical Analytical Laboratories
  • Contract Carefully
  • Keep Internal QC in Mind
  • Realize That Small Projects Can Create Big Risks
  • Provide Appropriate Oversight
  • Try Mediation
  • Written Agreements Are Essential

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This episode was produced by the following GBA Members: