How is contractor liability for loss, damage or destruction of government property determined?

By Anonymous on Wednesday, April 25, 2001 - 01:34 pm:

You need to look at the specific clause incorporate into the contract. In most events the contractor isn't liable unless the loss, damage or destruction is due to willful misconduct or lack of good faith by the contractor's management to establish a system to control, maintain and safeguard property. There is a whole bunch of case law on what constitutes "willful misconduct and lack of good faith". Each situation needs examined individually but the bottom line is "did management act prudently in setting up a system and did they take reasonable care in carrying it out?"

By Loki on Thursday, April 26, 2001 - 10:04 am:

Is it real property where they are working at, i.e., a facility at which they are performing and they damaged a building? Typically on construction work a clause is included requiring restoration to as found conditions.

Is it property that has been turned over to their care and control with an explicit contractual understanding that it will be returned in a certain condition? The previous response addresses this type of scenario, and, given more details, an on point response could be rendered.