June 2002

In re P.J. Dick, Inc.
2002 VA BCA LEXIS 2; 2002-1 B.C.A. (CCH) P31,732 (9/27/01)
The Department of Veterans Affairs (“VA”) awarded P.J. Dick, Inc. (“PJD”) a contract for the construction of a clinical addition to the Department of Veteran Affairs Medical Center in Ann Arbor, Michigan (the “Contract”). To complete its work under the Contract, PJD entered into a subcontract with Kent Electric Services (“KES”) pursuant to which KES agreed to perform all electrical work for the project for labor and material costs plus a $10,000 per month management fee.
Continue Reading VA Board of Contract Appeals Permits Application of “Measured Mile” Approach for Determining Inefficiencies Using Similar But Non-Identical Tasks as Standard of Comparison

Carll v. Terminex Int’l. Co., L.P.
2002 PA Super 44; 793 A.2d 921; 2002 Pa. Super. LEXIS 183 (2002)
The Carlls (“Plaintiffs”) instituted an action against Terminex International Company (“Terminex”) and other entities (collectively the “Defendants”), claiming that they sustained severe and permanent injuries as a result of Terminix’s negligent application of pesticides in and around their home. The Defendants responded with a petition to compel arbitration of the matter in accordance with the arbitration provisions of the contract at issue.
Continue Reading Pennsylvania Court Holds Arbitration Clause Which Did Not Permit Arbitrators to Question Enforceability of Exculpatory Clause Was Not Enforceable

Gaeta v. Ridley School District
SUPREME COURT OF PENNSYLVANIA, 788 A.2d 363; 2002 Pa. LEXIS 132( January 25, 2002)
Ridley School District invited bids for various prime contracts for the construction of a new high school. IBE Contracting, Inc. submitted a bid for the “Aluminum Entrances and Storefronts Construction”. In its bid package, IBE submitted a bid bond from a surety with a Best Rating of “B”. The Instructions to Bidders, however, required that, with respect to the bid bond, the “Surety Company shall be licensed. . .with a minimum Best Rating of A- or better.” After it was determined that IBE was the lowest bidder, the School District contacted IBE and requested that IBE submit a bid bond from a surety with the required Best Rating. IBE submitted a compliant bid bond and the School District awarded IBE the contract.
Continue Reading Pennsylvania Court Holds That Non-Compliance with Requirements of Instructions to Bidders Does Not Automatically Render Bid Incapable of Acceptance