D.C. Mun. Regs. r. 27-4033

Current through Register Vol. 71, No. 24, June 14, 2024

Rule 27-4033 - CONTRACTOR LIABILITY FOR LOSS OF OR DAMAGE TO DISTRICT PROPERTY

4033.1

The provisions of this section shall apply to contractor liability for loss of or damage to District property that occurs after acceptance as a result of defects or deficiencies in the goods delivered or services performed.

4033.2

Except as provided in §§ 4033.4 and 4033.5, the District shall act as a self-insurer by relieving contractors, as specified in this section, of liability for loss of or damage to property of the District that occurs after acceptance of goods delivered or services performed under a contract as a result of defects or deficiencies in the goods or services. However, the District shall not relieve the contractor of liability for loss of or damage to the contract end item itself, except for high-value items.

4033.3

Except as provided in §§ 4033.4 and 4033.5, in contracts requiring delivery of high- value items, the District shall relieve contractors of contractual liability for loss of or damage to those items. However, the relief shall not limit the District's rights arising under the contract to do the following:

(a) Have any defective item or its components corrected, repaired, or replaced when the defect or deficiency is discovered before the loss of or damage to high-value items occurs; or

(b) Obtain equitable relief when the defect or deficiency is discovered after such loss or damage occurs.

4033.4

The District shall not provide the contractual relief specified in §§ 4033.2 and 4033.3 when contractor liability can be preserved without increasing the contract price.

4033.5

Subject to the specific terms of the limitation of liability clause included in the contract, the relief provided under §§ 4033.2 and 4033.3 shall not apply, as follows:

(a) To the extent that contractor liability is expressly provided for under a contract clause approved by the Director;

(b) When a defect or deficiency in, or the District's acceptance of, the goods, services, or construction results from willful misconduct or lack of good faith on the part of the contractor or its agent; or

(c) To the extent that any contractor insurance, or self-insurance reserve, covers liability for loss or damage suffered by the District through purchase or use of the goods delivered or services performed under the contract.

4033.6

For items being priced at or based on catalog or market prices, the contracting officer shall not provide relief to contractors unless they can obtain a reduction from the catalog or market price which reflects the reduced contractor liability. The contracting officer shall include a clause, approved by the Director, to inform bidders and offerors of the provisions of this subsection.

D.C. Mun. Regs. r. 27-4033

Final Rulemaking published at 35 DCR 1729 (February 26, 1988)