Section 27-4022. TRANSFER OF TITLE AND RISK OF LOSS

 

4022.1Title to goods and construction shall pass to the District upon formal acceptance, regardless of when or where the District takes physical possession, unless the contract specifically provides for earlier passage of title.

 

4022.2Unless the contract specifically provides otherwise, risk of loss of or damage to goods shall remain with the contractor until, and shall pass to the District upon either of the following:

 

(a)Delivery of the goods to a carrier if transportation is f.o.b. origin; or

 

(b)Acceptance by the District or delivery of the goods to the District at the destination specified in the contract, whichever is later, if transportation is f.o.b. destination.

 

4022.3The provisions of §4022.2 shall not apply to goods that so fail to conform to contract requirements as to give the District a right of rejection.

 

4022.4The risk of loss of or damage to nonconforming goods shall remain with the contractor until cure or acceptance. After cure or acceptance, the provisions of §4022.2 shall apply.

 

4022.5The contractor shall not be liable for loss of or damage to goods caused by the negligence of officers, agents, or employees of the District acting within the scope of their employment.

 

4022.6The risk of loss or damage to construction shall remain with the contractor until formal acceptance of the construction by the District.

 

4022.7If any of a construction project is excepted from normal acceptance by the District due to defects or failure to conform to the requirements and specifications of the contract, or is subject to contingent acceptance pending cure of defects, the risk of loss or damage to the construction shall remain with the contractor until the defects are cured and the contingency is removed or the construction is formally accepted by the District.

 

source

Final Rulemaking published at 35 DCR 1724 (February 26, 1988).