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The slowdown in the economy and the pace of construction, the mushrooming of new technology, and greater competition have created new conditions under which construction contracts for the water industry operate. This article addresses liability issues involved in the industry's use of new products. The following topics are discussed: the legal framework related to using new products; submittal and review of data on equipment; the designer's responsibility; product liability; limitations of industry standards; relations between engineer and supplier; and examples of costly field problems.