{"id":100538,"date":"2018-11-02T06:26:27","date_gmt":"2018-11-02T10:26:27","guid":{"rendered":"https:\/\/sjcivil.com\/?p=100538"},"modified":"2024-03-28T08:52:39","modified_gmt":"2024-03-28T12:52:39","slug":"spearin-and-modified-total-cost-method-adopted-in-missouri","status":"publish","type":"post","link":"https:\/\/sjcivil.com\/spearin-and-modified-total-cost-method-adopted-in-missouri\/","title":{"rendered":"Spearin and Modified Total Cost Method Adopted in Missouri"},"content":{"rendered":"<p><strong>Executive Summary:\u00a0\u00a0<\/strong>One of contractors\u2019 most reliable defenses, the Spearin Doctrine, has been upheld in a Missouri Court.\u00a0 Certainly, for Missourians, this is a good thing, and to the extent, others may be able to reference this case or use a similar approach in claims, is a win for the construction industry.<\/p>\n<p><iframe loading=\"lazy\" style=\"border-radius: 12px;\" src=\"https:\/\/open.spotify.com\/embed\/episode\/26CbNr5m0nM5QCtlYm8DtJ?utm_source=generator\" width=\"100%\" height=\"152\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<p><strong>The bottom line.\u00a0\u00a0<\/strong>A recent Court of Appeals decision [Penzel Constr. Co. v. Jackson R-2 School District, No. ED103878 (Mo. Ct. App. Feb. 14, 2017)] adopted the use of the Spearin Doctrine and the Total Cost Method for proof of damages.<\/p>\n<p>This decision is important because it explicitly sets a precedent of recovery using this method; prior to this decision, the state of Missouri had neither accepted nor rejected this method.\u00a0 Now your attorney has a great tool in his\/her toolbox for your defense, or offense!<\/p>\n<p><em><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-101265 size-full\" src=\"https:\/\/sjcivil.com\/wp-content\/uploads\/2018\/11\/qrcode.png\" alt=\"\" width=\"234\" height=\"236\" srcset=\"https:\/\/sjcivil.com\/wp-content\/uploads\/2018\/11\/qrcode.png 234w, https:\/\/sjcivil.com\/wp-content\/uploads\/2018\/11\/qrcode-150x150.png 150w\" sizes=\"(max-width: 234px) 100vw, 234px\" \/><\/em><\/p>\n<p><strong>What is the Spearin Doctrine?\u00a0\u00a0<\/strong>From the American Bar Association (www.americanbar.org) [QR]\n<blockquote><p><em>\u201cThe Spearin doctrine\u2019s roots and name come from a 1918 United States Supreme Court decision, United States v. Spearin, 248 U.S. 132 (1918), which held that a contractor will not be liable to an owner for loss or damage that results solely from defects in the plan, design, or specifications provided to the contractor.\u201d<\/em><\/p><\/blockquote>\n<blockquote><p><em>\u201cSpearin holds that if a contractor is required to build according to plans and specifications prepared by the owner (or the owner\u2019s representative), then the contractor will not be responsible for the consequences of defects in the plan.\u201d<\/em><\/p><\/blockquote>\n<p><strong>How can I use this defense?<\/strong>\u00a0\u00a0The Spearin Doctrine, in my personal experience, has been claimed because, but the site conditions did not permit said method of construction by the contractor.\u00a0 The owner, therefore, took responsibility for our inability to build the job.<\/p>\n<p><em><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-101264 size-full\" src=\"https:\/\/sjcivil.com\/wp-content\/uploads\/2018\/11\/Capture.png\" alt=\"\" width=\"297\" height=\"153\" \/><\/em><\/p>\n<p>In Penzel\u2019s case, the \u201cPlans were defective in a number of materials ways, including\u201d<\/p>\n<ul>\n<li>Inadequate switching and wiring design<\/li>\n<li>Failure to call for emergency ballasts,<\/li>\n<li>Incorporating a defective gymnasium lighting design<\/li>\n<li>Omission in showing of water heater and circulating pumps wiring<\/li>\n<li>Calls for outdated products<\/li>\n<li>Noncompliance with building codes<\/li>\n<li>Incorrect depiction of site electrical work<\/li>\n<\/ul>\n<p>And, in this case, the Owner was responsible because (s)he provided drawings not free from significant defects.\u00a0 Penzel proved this through expert witnesses.<\/p>\n<p><strong>Collecting money.<\/strong>\u00a0 This case also established a precedent in a method of collecting money.\u00a0 There are several methods used in cost recovery.\u00a0 One of the weakest is the Total Cost Method (TCM).<\/p>\n<p style=\"text-align: left;\"><div class=\"su-note\"  style=\"border-color:#007dd2;border-radius:3px;-moz-border-radius:3px;-webkit-border-radius:3px;\"><div class=\"su-note-inner su-u-clearfix su-u-trim\" style=\"background-color:#0097ec;border-color:#ccffff;color:#ffffff;border-radius:3px;-moz-border-radius:3px;-webkit-border-radius:3px;\">TOTAL COST METHOD<\/p>\n<p style=\"text-align: left;\">Claim to Owner = Total Cost &#8211; Bid<\/div><\/div>\n<p>However, the Modified Total Cost Method was an approved as a method of cost recovery by the Missouri Court:<\/p>\n<div class=\"su-note\"  style=\"border-color:#757575;border-radius:3px;-moz-border-radius:3px;-webkit-border-radius:3px;\"><div class=\"su-note-inner su-u-clearfix su-u-trim\" style=\"background-color:#8f8f8f;border-color:#ffffff;color:#ffffff;border-radius:3px;-moz-border-radius:3px;-webkit-border-radius:3px;\">MODIFIED TOTAL COST METHOD<\/p>\n<p>Claim to Owner = Total Cost &#8211; Bid &#8211; Contractor&#8217;s Error<\/div><\/div>\n<p><strong>How do I use this information?\u00a0\u00a0<\/strong>Using this information is to know that this defense is available when the Contract Documents have been provided and they are preventing you from building efficiently.\u00a0 Plans with significant defects, that cost you money and or time, can translate into payment to your company.\u00a0 If you\u2019re in Missouri and your attorney doesn\u2019t know of this case, that\u2019s your new ex-attorney.\u00a0 This case is a big deal, it\u2019s a very big deal! [QR]\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-101263 size-medium\" src=\"https:\/\/sjcivil.com\/wp-content\/uploads\/2018\/11\/qr-code_YT-300x300.png\" alt=\"\" width=\"300\" height=\"300\" \/><\/p>\n<p><strong>My Story.\u00a0\u00a0<\/strong>Just last month I was in a case where we were preparing a Modified Total Cost Method Claim.\u00a0 These claims are relatively easy to prepare as you can find the total cost and the amount bid.\u00a0 The reduction taken by the contractor can be much more gray, but it is vital in the negotiation for the contractor to take responsibility for their own errors.\u00a0 A mediator will not take well to a contractor who puts 100% of the blame (and the cost of the claim) onto the Owner or Engineer (even though you may be right!).<\/p>\n<span class=\"et_bloom_bottom_trigger\"><\/span>","protected":false},"excerpt":{"rendered":"<p>Executive Summary:\u00a0\u00a0One of contractors\u2019 most reliable defenses, the Spearin Doctrine, has been upheld in a Missouri Court.\u00a0 Certainly, for Missourians, this is a good thing, and to the extent, others may be able to reference this case or use a similar approach in claims, is a win for the construction industry. The bottom line.\u00a0\u00a0A recent [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":104590,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","iawp_total_views":0,"footnotes":""},"categories":[302,393,131,50,38],"tags":[394,395,204,396,397,398,399,400,401,402,403,404],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Spearin and Modified Total Cost Method Adopted in Missouri<\/title>\n<meta name=\"description\" content=\"One of contractors\u2019 most reliable defenses, the Spearin Doctrine, has been upheld in a Missouri Court.\u00a0 Certainly, for Missourians.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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