Betterment on the Construction Project (law note)
Today’s post is thanks to a discussion with an engineer following a talk I gave for the ASCE of North Carolina. He asked about owners trying to recover for obvious mistakes, for which they’d have to pay anyhow.
That brought me to the topic of betterment. What is betterment, and why is it important in the construction world?
Betterment is a legal concept that says, even if your plan is missing something, if the owner would have had to pay for that missing item anyhow, they cannot get money from you.
A real life example: A designer’s set of plans showed sanitary sewer extending out 8 feet from the building footprint. It did not show the sewer connecting to the city sewer line. The owner later complained because it had to pay the contractor for a change order for the connection. However, since the owner would have had to pay for the connection regardless, the owner could not recover from the designer for the missing sewer connection. [Had the owner paid a premium due to the fact that the missing connection was discovered during construction, that premium over and above normal costs could have been recoverable.]
Betterment, then, is a defense to a claim of defective plans, because even if the plans are defective, the defect did not cost the owner any additional money.
It can be a tricky concept to explain–even some plaintiff’s lawyers that I’ve dealt with fail to understand the concept. However, it is an important part of many defenses.
Questions? Comments? Ever experienced a “betterment” situation yourself? Share in the comments section, below.