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PUC votes to ask Board of Supervisors to cap consultant indemnity for Calaveras Dam construction‑management contract
Summary
The commission approved a request to seek Board of Supervisors approval to limit third‑party indemnity for the Calaveras Dam replacement construction‑management consultant to about twice the consultant fee (with carve‑outs for gross negligence), citing industry reluctance to bid under uncapped liability.
The San Francisco Public Utilities Commission voted on March 9, 2010 to request that the Board of Supervisors approve a limit on consultant indemnification for the proposed construction‑management services agreement (CS911R) for the Calaveras Dam replacement project.
Harlan Kelly, assistant general manager for infrastructure, and Dan Wade, Calaveras project manager, said construction‑management firms have raised concerns about uncapped third‑party liability and that a fixed cap would broaden the pool of qualified bidders for this large, complex tunneling and dam project. Staff proposed a cap equal to roughly twice the value of the construction‑management fee (the draft cap discussed in the hearing was about $75,000,000), with explicit carve‑outs that would…
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