DBIA Dispute Resolution and Claims Management 3

Question 1

What does 'reservation of rights' mean when a design-build entity submits a claim?

Accepted Answer

The D-B entity preserves its right to seek additional compensation or time while continuing to perform the work

Answer

Reservation of rights allows the D-B entity to continue performing contested work while preserving its contractual right to seek compensation or time adjustments through the claims process.

Question 2

What is the function of a neutral evaluator in early dispute resolution on design-build projects?

Accepted Answer

To provide a non-binding expert opinion on a dispute to help parties assess their positions and negotiate a settlement

Answer

A neutral evaluator provides an objective, non-binding assessment of a dispute, helping both parties understand the strengths and weaknesses of their positions to facilitate voluntary settlement.

Question 3

What is 'pass-through' litigation in the context of design-build subcontractor claims?

Accepted Answer

A process where the D-B entity asserts a subcontractor's claim against the owner on the subcontractor's behalf

Answer

Pass-through claims allow a D-B entity to assert a subcontractor's claim against the owner, since subcontractors have no direct contract with the owner but may have suffered damages from owner actions.

Question 4

Which of the following best describes the 'economic loss rule' as it affects design-build disputes?

Accepted Answer

A legal doctrine limiting tort recovery for purely economic losses, requiring parties to rely on contract remedies

Answer

The economic loss rule generally bars tort claims for purely economic losses, requiring parties to rely on contractual remedies, which affects how design-build disputes are structured and what claims are available.

Question 5

What is the significance of a 'mutual waiver of consequential damages' provision in a DBIA standard contract?

Accepted Answer

Both parties agree to waive claims for indirect damages like lost profits and loss of use, limiting recovery to direct damages

Answer

A mutual waiver of consequential damages limits both parties' exposure to indirect losses, providing cost certainty and reducing the stakes of disputes while preserving claims for direct damages.

DBIA - Design-Build Institute of America Certification Practice Test

DBIA - Design-Build Institute of America Certification Practice Test

DBIA Dispute Resolution and Claims Management 3