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Second Appeal Brief
PA ID# 086-99086-00; Miami-Dade County
PW ID# 8889; Miami International Airport-South Terminal
Citation: FEMA-1609-DR-FL, Miami-Dade County, Miami International Airport-South Terminal, Project Worksheet (PW) 8889
Reference: Legal responsibility
Summary: Heavy rain, high wind, and storm surge from Hurricane Wilma damaged the Miami International Airport’s South Terminal, which was under construction at the time of the disaster. FEMA prepared Project Worksheet 8889 for $4,199,192 to reimburse Miami-Dade County (Applicant) for repair of the damage. FEMA conducted a review of the Applicant’s construction contract with the contractor, Parsons-Oderbrecht Joint Venture (POJV). The review revealed that POJV had legal responsibility for the South Terminal expansion project at the time of the disaster. As a result, FEMA obligated the PW for $0.
The Applicant appealed FEMA’s determination on November 2, 2006, stating that the Applicant had legal responsibility for the cost of repairing damage. In support of the claim, the Applicant submitted contract documentation that identified the Applicant as responsible for costs not covered by insurance for repair of damage resulting from a cause other than contractor negligence. The Regional Administrator denied the appeal on March 28, 2008, stating that there were no provisions in the contract that relieved the contractor of its legal responsibility for actual damage incurred as a result of the storm.
In the second appeal, submitted on July 29, 2011, the Applicant states that due to the unreasonable cost burden to POJV from the risk on the $510M facility, the Applicant assumed responsibility for the Builder’s Risk premiums and deductibles. The Applicant maintains that these provisions establish the Applicant’s legal responsibility for the costs associated with repair of the hurricane damage.
Issue: Does the Applicant’s commitment to pay for the contractor’s insurance premiums and deductibles establish the Applicant’s legal responsibility for the work to repair the hurricane damage to the South Terminal while it was under construction?
Finding: No, the Applicant did not have legal responsibility for repairing disaster damage to the South Terminal at the time of the disaster.
Rationale: Title 44 of the Code of Federal Regulations (44 CFR) §206.223(a), General work eligibility, General