Claim for Damages to Property Incident to the Construction of Power Transmission Lines by a Government Contractor

A report from the Department of the Interior was requested in connection with a claim for damages to property incident to the construction of power transmission lines. The report discloses that the Administrator of the Bonneville Power Administration takes the position that since the Insurance Company (the surety) undertook to complete the contract upon the default of the contractor, it should settle and adjust the claim in accordance with a provision in the contact requiring such action by the contractor and so advised the surety. The report also discloses that the Administrator of the Bonneville Power Administration was advised by the Office of the Regional Solicitor of the Department of the Interior that the Government would not be liable under the Federal Tort Claims Act, or under its right-of-way agreement, for the damage caused by the contractor.