Be Careful about Responsibility for Defective Cost Estimates in Current Environment of Price Spikes and Supply Shortages

by Kent Holland | Jul 27, 2021 | Newsletter Article

In reviewing and negotiating design professional contracts our office often sees contract clauses stating that the design professional must design a project to meet the client’s budget and that, if bids come in over the budget, the Owner may require the design firm to...

Subcontractor Entitled to Recover Costs of Removing Asphalt Pavement instead of Limited Amount of Concrete Pavement as Specified

by Kent Holland | Apr 27, 2021 | Newsletter Article

GC and its subcontractor disagreed over whether the scope of work of the subcontract required the Sub to remove all pavement in a parking lot or only the concrete portion of the pavement.  The bidding documents described the work of subcontractor bidders to include...

Contractor Cannot make Performance Bond Claim when it Failed to Terminate its Subcontractor

by Kent Holland | Apr 27, 2021 | Newsletter Article

GC barred from recovering from the surety for damages allegedly incurred due to faulty work of subcontractor because it failed to meet the conditions precedent to the performance bond responsibility.  The surety bond expressly provided that obligations of the surety...

Contractor had no Professional Liability Coverage under CGL Policy

by Kent Holland | Apr 27, 2021 | Newsletter Article

When a swimming pool builder was sued by an individual that suffered injury in the pool that the builder contracted with the health club to design and construct.  The complaint alleged negligent design.  The builder tendered the claim to its commercial general...

Economic Loss Doctrine Bars Suit by Developer against a Subcontractor

by Kent Holland | Apr 21, 2021 | Newsletter Article

The economic loss rule required the court to dismiss a negligent suit by a commercial property owner/developer against a subcontractor.  Court explained that parties generally do not owe each other a duty of care to prevent economic loss.  The owner contracted with a...

Individual was not an “Agent” entitled to Indemnification

by Kent Holland | Apr 21, 2021 | Newsletter Article

A laborer was injured when he fell from scaffolding that collapsed while he was performing masonry work. He sued a number of entities and individuals involved in the project for Wegmans Food Markets. Aeroteck, Inc. is one entity that was sued based on its having...