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April 27, 2011

Cause for pause: consultant held liable for negligent recommendation of award

By Christina Kim.

In the Stanco case a professional consulting firm was held liable to an owner where the owner relied on its recommendation to award to Bidder A and was then successfully sued by Bidder B. Now we have a US case where an engineering firm was liable for negligence in recommending acceptance of a low bidder that subsequently defaulted under the contract.

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