Governor signs SB 972, clarifying design professionals' duty to defend

Governor Schwarzenegger has now signed SB 972, a new law that clarifies when design professionals will owe a "duty to defend" to public agencies when lawsuits are filed that implicate the services provided by such professionals. The new statute, which will be effective on January 1, 2011, was adopted in response to two court decisions (Crawford v. Weather Shield Mfg., Inc. (2007) 44 Cal.4th 541 and UDC v. CH2M Hill (2010) 181 Cal.App.4th 10), which held that parties could be required to bear the costs of defense under common contractual indemnity provisions, even if they are not ultimately found to have been negligent.
 

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New case delineates boundaries between bidder responsiveness and responsibility

A court of appeal case published on August 31, Great West Contractors, Inc. v. Irvine Unified School District, refined the rules for public agencies evaluating bids submitted for a low-bid contract by clarifying the distinction between bidder responsiveness and bidder responsibility.  In short, bidder responsiveness can only be determined on the face of the bid, and the rejection of a bid based on information obtained from an investigation external to the bid must be evaluated as an issue of bidder responsibility.  The court also made several observations about the apparent favoritism of the School District in attempting to award the contract to the third low bidder.   Please read on for a discussion of the case.   

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