Building Plans: Implied Warranty of Accuracy

A well-settled principle in Maryland construction law is if a contractor is bound to build a project in accordance to the plans and specifications prepared by the building owner, the contractor will not be responsible for the consequences of defects in the plans and specifications. This responsibility to the contractor is not affected by standard contract clauses requiring contractors to visit the site, check the plans, and to inform themselves of the requirements of the work. Plans and specifications provided by an owner contain an “implied warranty” of accuracy. This essentially means a contractor should be able to assume plans and specifications are reliable enough to use as the basis for the purpose intended.

If there are defects in the plan and specifications and the contractor incurs damages as a result, the contractor may be able to recover its damages from the owner. Recovery by the contractor could include damages suffered for delays in the work arising out of the defective plans and specifications and an equitable adjustments because of increased costs.

There are, however, provisions to protect owners. If a contractor knows or should have known defects existed in the plans and specifications prior to construction, but continues with the construction regardless of the defect, a contractor will be precluded from recovering any alleged damages. Contractors should ensure there are no obvious defects with the plans or specifications or they will be held responsible for any costs resulting from the defective plans and specifications. Prior to submitting a bid for work, a contractor should ask questions if any ambiguities exist in the bid documents. A simple telephone call to the procurement officer or owner will save parties from possible issues and additional costs down the road. Also, if the contractor discovers an issue with the plans and specifications during construction, it would be best to notify the owner of the potential problems. Defective plans and specifications also need to cause actual damage to the contractor.

Owners should beware of defective plans and specifications when hiring contractors to construct or renovate a private house, commercial building, or even remodeling office space. The burden, however, is on both the owner and the contractor to ensure the plans and specifications are accurate.

If you have further questions, please contact Michael Siri at 410-583-2400 or siri@bowie-jensen.com.