Situation A

A construction contract contains a provision that the contractor must guarantee that a

sewer system to be installed will not be subject to groundwater infiltration of over $500$

gallons per day per in diameter of pipe per mile. Upon completion of the installation,

tests reveal infiltration of $12,500$ gallons per day in an $18,000-$foot$-$run on six$-$inch pipe.

Situation B

A contractor encounters rock in an urban area excavation and elects to loosen it by

blasting. Advice from experts was obtained, and the blasting operations were conducted

with great skill and care. However, cracking occurred in the plaster walls of several

houses in the immediate vicinity of the work because of the blasting.

Briefly discuss these two situations, stating whether either of them results in liability for

the contractor and, if so$,$ the type of liability involved.