Liability of the entity capable of detecting a defect of construction works: a comparative study of the U.S. and the Republic of Lithuania
Abstract
The his research looks specifically into the potential legal liability of the entity capable of detecting construction defects: contractor, nonprofessional owner, professional owner, technical supervisor, designer and building inspector. In this study, the responsibility of each entity for construction defects is discussed and the corresponding documentation and statutory and case law are analyzed for the U.S., Lithuania, and some other countries for comparative purposes.
Keyword : quality management, construction law, defects of construction works, construction mamagement, conflict management
How to Cite
Mitkus, S., & White, N. J. (2018). Liability of the entity capable of detecting a defect of construction works: a comparative study of the U.S. and the Republic of Lithuania. Business, Management and Economics Engineering, 16, 174-189. https://doi.org/10.3846/bme.2018.2000
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Aljassmi, H. A., & Han, S. (2014). Classification and occurrence of defective acts in residential construction projects. Journal of Civil Engineering and Management, 20(2), 175-185. https://doi.org/10.3846/13923730.2013.801885
American Institute of Architects AIA-201, Contract for Construction. (2007). Article 4AIA Document B101-2007.
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Brakalova, M. (2016). Germany: public procurement, overview 2016. Retrieved from http://www.mondaq.com/germany/x/464698/Government+Contracts+Procurement+PPP/Public+Procurement+2016+Germany+Overview
Boboc, A., et al. (2017). An approach to identify the impact of human intervention on major defects in road design. Construction and Maintenance, Advanced Engineering Forum, 21, 327-334. https://doi.org/10.4028/www.scientific.net/AEF.21.327
Cambridge English Dictionary. (2017). Retrieved from http://dictionary.cambridge.org/us/dictionary/english/defect
Chao-Duivis, M. A. B., Iudica, G., Kohl, B., Lavers, A., Périnet-Marquet, H., Stöckli, H., & Verveniotis, P. (2015). Studies in European construction law. Instituut voor Bouwrecht (IBR) | 1e druk, EAN: 97 894 63150071.
Cho, Y., Cha, H., Kim, K., Hwang, Y., & Shin, D. (2014). Developing countermeasure model to prevent planned lawsuit on apartment construction defects. Korea Journal of Construction Engineering and Management 15(3), 74-82. https://doi.org/10.6106/KJCEM.2014.15.3.074
Chung, H. W. (1999). Understanding quality assurance in construction – a practical guide to ISO 9000. London, E&FN Spon. https://doi.org/10.1038/46721
Civil Code of the Republic of Lithuania. (2000). Valstybės žinios, Nr. 74-2262.
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Directive 2011/92/EU of the European Parliament and of the Council of 13 December 2011 on combating the sexual abuse and sexual exploita-tion of children and child pornography, and re-placing Council Framework Decision 2004/68/JHA. OJ L 335, 17.12.2011 (pp. 1-14).
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Forcada, N., Macarulla, M., Gangolells, M., & Casals, M. (2014). Assessment of construction defects in residential buildings in Spain. Building Research & Information, 42(5), 629-640. https://doi.org/10.1080/09613218.2014.922266
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Land Code of the Russian Federation. (2001). Retrieved from www.unece.org/.../experts/russia/documents/Legislation/landcode.doc
Law on Construction of Republic of Lithuania. (1996). Valstybės žinios, Nr. 32-788.
Lin, Y-C., Chang, J.-X., & Su, Y-C. (2016). Developing construction defect management system using BIM technology in quality inspection. Journal of civil engineering and management, 22(7), 903-914. Vilnius: Technika. https://doi.org/10.3846/13923730.2014.928362
Low, S. P., & Wee, D. (2001). Improving maintenance and reducing building defects through ISO 9000. Journal of Quality in Maintenance Engineering, 7(1), 6-24. https://doi.org/10.1108/13552510110386865
Mardani, A., Jusoh, A., & Zavadskas, E. K. (2015a). Sustainable and renewable energy: an overview of the application of multiple criteria decision making techniques and approaches. Sustainability, 7, 13947-13984. https://doi.org/10.3390/su71013947
Mardani, A., Jusoh, A., & Zavadskas, E. K. (2015b). Fuzzy multiple criteria decision-making techniques and applications – two decades review from 1994 to 2014. Expert Systems with Applications, 42, 4126-4148. https://doi.org/10.1016/j.eswa.2015.01.003
Merriam-Webster Dictionary. (2017). Retrieved from https://www.merriam-webster.com/dictionary/defect
Mills, A., Love, P. E., & Williams, P. (2009). Defect costs in residential construction. Journal of Construction Engineering and Management, 135(1), 12-16. https://doi.org/10.1061/(ASCE)0733-9364(2009)135:1(12)
Mitkus, S. (2016, May). The concept of proper quality of construction works in Lithuanian construction law. The 9th International Scientific Conference “Business and Management 2016” (pp. 1-10). Vilnius, Lithuania. Vilnius: Technika. https://doi.org/10.3846/bm.2016.27
Mitkus, S. (2017). Teisiniai statybos darbų kokybės aspektai [Legal aspects of quality of construction works]. Vilnius, Registrų centras (in Lithuanian).
Mitkus, S., & Cibulskienė, R. (2016, May). The concept of builder and its liability for the quality of the construction works in Lithuanian construction law. The 9th International Scientific Conference “Business and Management 2016” (pp. 1-9). Vilnius, Lithuania.
Molenaar, K., Songer, A., & Barash, M. (1999). Public-Sector design/build evolution and performance. Journal of Management in Engineering, 15(2), 54-62. https://doi.org/10.1061/(ASCE)0742-597X(1999)15:2(54)
Nevada Revised Statute 40.615. (2016).
New Jersey law N. J. Stat. § 59:9-2. (2017).
Oxford Advanced Learner’s Dictionary. (2017). Retrieved from http://www.oxfordlearnersdictionaries.com/us/definition/english/defect_1?q=defect, 2017
Poles, M. S. (2008). What are construction defects?. Retrieved from http://www.mpgroup.com/documents/What-Are-Construction-Defects-An-ICBO-Symposium.pdf
Regulation (EC) No 765/2008 of the European Parliament and of the Council of 9 July 2008 setting out the requirements for accreditation and market surveillance relating to the market-ing of products and repealing Regulation (EEC) No 339/93 (Text with EEA relevance). OJ L 218, 13.8.2008 (pp. 30-47).
Regulation (EU) No 305/2011 of the European Parliament and of the Council of 9 March 2011 laying down harmonised conditions for the mar-keting of construction products and repealing Council Directive 89/106/EEC Text with EEA relevance. OJ L 88, 4.4.2011 (pp. 5-43).
Sedeka, M., & Serwab, A. (2016). Development of new system for detection of bridges construction defects using terrestrial laser remote sensing technology. The Egyptian Journal of Remote Sensing and Space Science, 19(2), 273-283. https://doi.org/10.1016/j.ejrs.2015.12.005
Schenck, S., & Goss, K. (2016). Liability for construction defects that result from multiple causes. Thomson Reuters E Journal of the ACCL E, 9(1). Retrieved from https://cgspllc.com/wp-content/uploads/2016/02/Liability-for-Construction-Defects-C0048268xA68CB.pdf
Technical Regulation of Construction STR 1.06.01:2016 “Construction works. Supervision of construction works”. TAR, 2016-12-05, Nr. 2016-28228.
Technical Regulation of Construction STR 1.06.01:2016 “Construction works. Supervision of construction of construction works”. TAR, 2016-12-05, Nr. 2016-28228.
The Civil Code of the Russian Federation. (2011) Retrieved from http://www.wipo.int/edocs/lexdocs/laws/en/ru/ru083en.pdf
The Free Dictionary. (2017). Failure. Dictionary, Encyclopedia and Thesaurus. Farlex, Web. 09 Mar. 2017.
Town Planning Code of the Russian Federation. (2004). Retrieved from http://cis-legislation.com/docu-ment.fwx?rgn=7632
Travelers Indem. Co. v. 28 E. 70th St. Constr. Co., 296 F. Supp. 2d 476, 478, 2003 U.S. Dist. LEXIS 23 170 , *1 (S.D.N.Y.). (2003).
Trinkūnienė, E., Podvezko, V., Zavadskas, E. K., Jokšienė, I., Vinogradova, I., & Trinkūnas, V. (2017). Evaluation of quality assurance in contractor contracts by multi-attribute decision-making methods. Economic Research-Ekonomska Istraživanja, 30(1), 1152-1180. https://doi.org/10.1080/1331677X.2017.1325616
TŪB “Vikensta” v. UAB “Skala”. (2006). Supreme Court of Lithuania, Case No.3K-3-135/2006.
U.S. vs. Spearin, 248 U.S. 132, 39 S.Ct. 59, 63 L.Ed. 166. (1918).
UAB “Angel Stone” v. UAB “Ulgis”. (2009). Supreme Court of Lithuania. Case No. 3K-3-343/2009.
UAB “Jaukuriai” v. BUAB “Forsitia”. (2010). Supreme Court of Lithuania. Case No. 3K-3-469/2010.
UAB “Klaipėdos hidrotechnika” v. “State Enterprise Klaipeda State Seaport Authority”. (2014). Supreme Court of Lithuania. Case No. 3K-3-492/2014.
UAB “Seno dvaro sodyba” v. UAB “Rustonas”. (2015). Supreme Court of Lithuania Case No. 3K-3-389-969/2015.
UAB “Valviktė” v. UAB “Laugina”. (2008). Supreme Court of Lithuania. Case No. 3K-3-575, 2008.
UAB “Laugina” v. UAB “Agaras”. (2008). Supreme Court of Lithuania. Case No. 3K-3-585, 2008.
Van Den Brink, C., & Han, S. (2015). Application of social network analysis for analyzing the relationships between root and direct causes of defects. Modern Applied Science, 9(12), 12. https://doi.org/10.5539/mas.v9n12p12
Aïssani, A., Chateauneuf, A., Fontaine, J. P., & Audebert, P. (2016). Quantification of workmanship insulation defects and their impact on the thermal performance of building facades. Applied Energy, 165, 272-284. https://doi.org/10.1016/j.apenergy.2015.12.040
Aljassmi, H. A., & Han, S. (2014). Classification and occurrence of defective acts in residential construction projects. Journal of Civil Engineering and Management, 20(2), 175-185. https://doi.org/10.3846/13923730.2013.801885
American Institute of Architects AIA-201, Contract for Construction. (2007). Article 4AIA Document B101-2007.
Bakšiene, R. (2016). Examples of socialist juridical tradition in contemporary regulation of juridical construction relations [Socialistinės teisės tradicijos pavyzdžiai šiuolaikiniame statybos santykių teisiniame reguliavime]. Jurisprudencija, 3(1), 73-88 (in Lithuanian).
Brakalova, M. (2016). Germany: public procurement, overview 2016. Retrieved from http://www.mondaq.com/germany/x/464698/Government+Contracts+Procurement+PPP/Public+Procurement+2016+Germany+Overview
Boboc, A., et al. (2017). An approach to identify the impact of human intervention on major defects in road design. Construction and Maintenance, Advanced Engineering Forum, 21, 327-334. https://doi.org/10.4028/www.scientific.net/AEF.21.327
Cambridge English Dictionary. (2017). Retrieved from http://dictionary.cambridge.org/us/dictionary/english/defect
Chao-Duivis, M. A. B., Iudica, G., Kohl, B., Lavers, A., Périnet-Marquet, H., Stöckli, H., & Verveniotis, P. (2015). Studies in European construction law. Instituut voor Bouwrecht (IBR) | 1e druk, EAN: 97 894 63150071.
Cho, Y., Cha, H., Kim, K., Hwang, Y., & Shin, D. (2014). Developing countermeasure model to prevent planned lawsuit on apartment construction defects. Korea Journal of Construction Engineering and Management 15(3), 74-82. https://doi.org/10.6106/KJCEM.2014.15.3.074
Chung, H. W. (1999). Understanding quality assurance in construction – a practical guide to ISO 9000. London, E&FN Spon. https://doi.org/10.1038/46721
Civil Code of the Republic of Lithuania. (2000). Valstybės žinios, Nr. 74-2262.
Common Law and Civil Law Traditions. (2017). Retrieved from https://www.law.berkeley.edu/library/robbins/CommonLawCivilLawTraditions.html
Constitution of the Republic of Lithuania. (1992). Lietuvos Aidas, Nr. 220.
Constitution of the Russian Federation. (1993). Retrieved from http://www.constitution.ru/en/10003000-01.htm
Davis, S. A. (2015). Under construction: the past, present, and future of chapter 40. Nevada’s Construction-Defect Laws. Nev. LJ, 16, p. 1201.
Directive 2010/31/EU of the European Parliament and of the Council of 19 May 2010 on the ener-gy performance of buildings. OJ L 153, 18.6.2010 (pp. 13-35).
Directive 2011/92/EU of the European Parliament and of the Council of 13 December 2011 on combating the sexual abuse and sexual exploita-tion of children and child pornography, and re-placing Council Framework Decision 2004/68/JHA. OJ L 335, 17.12.2011 (pp. 1-14).
Directive 2014/24/EU of the European Parliament and of the Council of 26 February 2014 on pub-lic procurement and repealing Directive 2004/18/EC. OJ L 94, 28.3.2014 (pp. 65-242).
EJCDC Standard Form of Agreement between Owner and Engineer for Professional Services. (2008).Federal Acquisition Regulations, 48 C.F.R. 1 et seq. (2018).
Forcada, N., Macarulla, M., Gangolells, M., & Casals, M. (2014). Assessment of construction defects in residential buildings in Spain. Building Research & Information, 42(5), 629-640. https://doi.org/10.1080/09613218.2014.922266
German Federal Building Code BGB. (1997). Retrieved from https://www.bgbl.de/xaver/bgbl/start.xav?startbk=Bundesanzeiger_BGBl&jumpTo=bgbl117s1057.pdf#__bgbl__%2F%2F*%5B%40attr_id%3D%27bgbl117s1057.pdf%27%5D__1521296818947
Kraus, M., Vondráčková, T., & Nývlt, V. (2016). Defects, faults and accidents of contemporary constructions. MATEC Web of Conferences Building Defects 2016. Retrieved from https://www.matec-conferences.org/articles/matecconf/pdf/2017/07/matecconf_bd2017_03004.pdf
Land Code of the Russian Federation. (2001). Retrieved from www.unece.org/.../experts/russia/documents/Legislation/landcode.doc
Law on Construction of Republic of Lithuania. (1996). Valstybės žinios, Nr. 32-788.
Lin, Y-C., Chang, J.-X., & Su, Y-C. (2016). Developing construction defect management system using BIM technology in quality inspection. Journal of civil engineering and management, 22(7), 903-914. Vilnius: Technika. https://doi.org/10.3846/13923730.2014.928362
Low, S. P., & Wee, D. (2001). Improving maintenance and reducing building defects through ISO 9000. Journal of Quality in Maintenance Engineering, 7(1), 6-24. https://doi.org/10.1108/13552510110386865
Mardani, A., Jusoh, A., & Zavadskas, E. K. (2015a). Sustainable and renewable energy: an overview of the application of multiple criteria decision making techniques and approaches. Sustainability, 7, 13947-13984. https://doi.org/10.3390/su71013947
Mardani, A., Jusoh, A., & Zavadskas, E. K. (2015b). Fuzzy multiple criteria decision-making techniques and applications – two decades review from 1994 to 2014. Expert Systems with Applications, 42, 4126-4148. https://doi.org/10.1016/j.eswa.2015.01.003
Merriam-Webster Dictionary. (2017). Retrieved from https://www.merriam-webster.com/dictionary/defect
Mills, A., Love, P. E., & Williams, P. (2009). Defect costs in residential construction. Journal of Construction Engineering and Management, 135(1), 12-16. https://doi.org/10.1061/(ASCE)0733-9364(2009)135:1(12)
Mitkus, S. (2016, May). The concept of proper quality of construction works in Lithuanian construction law. The 9th International Scientific Conference “Business and Management 2016” (pp. 1-10). Vilnius, Lithuania. Vilnius: Technika. https://doi.org/10.3846/bm.2016.27
Mitkus, S. (2017). Teisiniai statybos darbų kokybės aspektai [Legal aspects of quality of construction works]. Vilnius, Registrų centras (in Lithuanian).
Mitkus, S., & Cibulskienė, R. (2016, May). The concept of builder and its liability for the quality of the construction works in Lithuanian construction law. The 9th International Scientific Conference “Business and Management 2016” (pp. 1-9). Vilnius, Lithuania.
Molenaar, K., Songer, A., & Barash, M. (1999). Public-Sector design/build evolution and performance. Journal of Management in Engineering, 15(2), 54-62. https://doi.org/10.1061/(ASCE)0742-597X(1999)15:2(54)
Nevada Revised Statute 40.615. (2016).
New Jersey law N. J. Stat. § 59:9-2. (2017).
Oxford Advanced Learner’s Dictionary. (2017). Retrieved from http://www.oxfordlearnersdictionaries.com/us/definition/english/defect_1?q=defect, 2017
Poles, M. S. (2008). What are construction defects?. Retrieved from http://www.mpgroup.com/documents/What-Are-Construction-Defects-An-ICBO-Symposium.pdf
Regulation (EC) No 765/2008 of the European Parliament and of the Council of 9 July 2008 setting out the requirements for accreditation and market surveillance relating to the market-ing of products and repealing Regulation (EEC) No 339/93 (Text with EEA relevance). OJ L 218, 13.8.2008 (pp. 30-47).
Regulation (EU) No 305/2011 of the European Parliament and of the Council of 9 March 2011 laying down harmonised conditions for the mar-keting of construction products and repealing Council Directive 89/106/EEC Text with EEA relevance. OJ L 88, 4.4.2011 (pp. 5-43).
Sedeka, M., & Serwab, A. (2016). Development of new system for detection of bridges construction defects using terrestrial laser remote sensing technology. The Egyptian Journal of Remote Sensing and Space Science, 19(2), 273-283. https://doi.org/10.1016/j.ejrs.2015.12.005
Schenck, S., & Goss, K. (2016). Liability for construction defects that result from multiple causes. Thomson Reuters E Journal of the ACCL E, 9(1). Retrieved from https://cgspllc.com/wp-content/uploads/2016/02/Liability-for-Construction-Defects-C0048268xA68CB.pdf
Technical Regulation of Construction STR 1.06.01:2016 “Construction works. Supervision of construction works”. TAR, 2016-12-05, Nr. 2016-28228.
Technical Regulation of Construction STR 1.06.01:2016 “Construction works. Supervision of construction of construction works”. TAR, 2016-12-05, Nr. 2016-28228.
The Civil Code of the Russian Federation. (2011) Retrieved from http://www.wipo.int/edocs/lexdocs/laws/en/ru/ru083en.pdf
The Free Dictionary. (2017). Failure. Dictionary, Encyclopedia and Thesaurus. Farlex, Web. 09 Mar. 2017.
Town Planning Code of the Russian Federation. (2004). Retrieved from http://cis-legislation.com/docu-ment.fwx?rgn=7632
Travelers Indem. Co. v. 28 E. 70th St. Constr. Co., 296 F. Supp. 2d 476, 478, 2003 U.S. Dist. LEXIS 23 170 , *1 (S.D.N.Y.). (2003).
Trinkūnienė, E., Podvezko, V., Zavadskas, E. K., Jokšienė, I., Vinogradova, I., & Trinkūnas, V. (2017). Evaluation of quality assurance in contractor contracts by multi-attribute decision-making methods. Economic Research-Ekonomska Istraživanja, 30(1), 1152-1180. https://doi.org/10.1080/1331677X.2017.1325616
TŪB “Vikensta” v. UAB “Skala”. (2006). Supreme Court of Lithuania, Case No.3K-3-135/2006.
U.S. vs. Spearin, 248 U.S. 132, 39 S.Ct. 59, 63 L.Ed. 166. (1918).
UAB “Angel Stone” v. UAB “Ulgis”. (2009). Supreme Court of Lithuania. Case No. 3K-3-343/2009.
UAB “Jaukuriai” v. BUAB “Forsitia”. (2010). Supreme Court of Lithuania. Case No. 3K-3-469/2010.
UAB “Klaipėdos hidrotechnika” v. “State Enterprise Klaipeda State Seaport Authority”. (2014). Supreme Court of Lithuania. Case No. 3K-3-492/2014.
UAB “Seno dvaro sodyba” v. UAB “Rustonas”. (2015). Supreme Court of Lithuania Case No. 3K-3-389-969/2015.
UAB “Valviktė” v. UAB “Laugina”. (2008). Supreme Court of Lithuania. Case No. 3K-3-575, 2008.
UAB “Laugina” v. UAB “Agaras”. (2008). Supreme Court of Lithuania. Case No. 3K-3-585, 2008.
Van Den Brink, C., & Han, S. (2015). Application of social network analysis for analyzing the relationships between root and direct causes of defects. Modern Applied Science, 9(12), 12. https://doi.org/10.5539/mas.v9n12p12