The Spearin Doctrine

If there is a flaw in the design, who is responsible to bear the responsibility for the cost of any damage or loss that can be associated with that flaw? You, as the contractor, right? If this was before 1918, then yes, you are absolutely correct. Up until the Spearin Doctrine was recognized by the United States, unless the problem was due to an Act of God or nature, then the contractor was absolutely responsible for any costs associated with flaws in the design. 

In 1918, a United States contractor by the name of Spearin, was contracted to relocate a 6-foot storm sewer, however, around a year after relocation, the sewer  ended up breaking from the pressure. The Government said that, as the contractor, Spearin was responsible for repairing the sewer. However, Spearin said that since the government had provided the plans, and the plans were faulty, the responsibility to fix the defective sewer was their responsibility. The Supreme Court sided with Spearin, and the Spearin Doctrine was adopted. 

The Spearin Doctrine states that, “If the contractor is bound to build according to plans and specifications prepared by the owner, the contractor will not be responsible for the consequences of defects in the plans and specifications. This responsibility of the owner is not overcome by the usual clause requiring builders to visit the site, to check the plans, and to inform themselves of the requirements of the work. The contractor should be relieved, if he was misled by erroneous statements in the specifications.” Which means that the owner is assuming the responsibility of the adequacy of the plans provided to the contractor. 
While the Spearin Doctrine can help protect a contractor, it isn’t a get out of jail free card. The contractor has to show that they reasonably relied upon the defects in the plans and specifications, and the defects caused the issues. 

While the Spearin Doctrine helps to ensure fairness and accountability in contractual relationships, and helps mitigate the risks associated with design defects, the contractor is still responsible for doing due diligence in reviewing the plans and negotiating contracts to minimize potential for disputes. 

You will want to make sure that it’s clear who “owns” or is “responsible” for the drawings. When in doubt, contact us for a quick chat.

Listen to our Podcast: Contractor Biz Corner where we talk about this and other cases and other questions you may have as a contractor.