Default Termination of Contractor Defective for Failure of Owner to Provide Architect’s Certificate of Good Cause for Termination
Cure Notice,Default Termination,Sureties
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Where City terminated its contractor for cause, the contractor moved for summary judgment arguing that the termination was defective for lack of an architect’s certificate of good cause for termination as required by the applicable AIA A201 contract document. On the project, the city and contractor each accused the other of causing delay. The city [...]
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Subcontractor Was Wrongfully Terminated Where Its Performance was Delayed by the Prime Contractor and Others
ConstructionRisk.com Report Vol. #13, Issue #7
See article in the following topic indices:
Damages - Liquidated,Default Termination,Delay,Interference with Contract,Liquidated damages,Termination
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Demolition delays by others for whom the subcontractor was not responsible significantly impeded the subcontractor’s ability to timely perform its work. Stored equipment and activity of other subcontractors prevented the subcontractor from accessing work areas. And revisions to plans that were required as a result of design errors required removal and relocation of piping the [...]
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Subcontractor forfeits right to arbitration by filing demand untimely
Arbitration,Default,Default Termination,Subcontractor issues,Time Limitations on Litigation
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Where a subcontract required subcontractor to commence arbitration proceedings no later than 30 days following receipt of an adverse decision by the contractor, the failure of the subcontractor to contest a decision within 30 days was fatal to later seeking arbitration. Holt, a drywall subcontractor, entered into a contract with Choate, the general contractor, to [...]
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Surety Fails to Pay on Bond for Default Termination
Default Termination,Federal Government Contracts,Performance B,Surety
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When the U.S. Government terminated a contractor for failure to perform in accordance with the contract provisions, the contractor’s surety asserted that the termination was wrongful and refused to pay on the performance bond. After much litigation it was held that the contractor was properly terminated. When the surety still did not pay on the [...]
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Contractor Terminated for Default for Failure to Adequately Respond to Cure Notice
Cure Notices,Default Termination,Delays,Federal Government Contracts,Impossibility Defense
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Where contractor failed to respond adequately to the Navy’s reasonable request of assurances of timely performance, the Navy was entitled to regard the contractor’s failure to provide such assurances as a breach of the contract. The issuance of a cure notice may be justified even if the circumstances at that point do not justify a [...]
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Substantial completion not granted until fire alarm system is successfully tested
Beneficial Occupancy,Default Termination,Substantial Completion
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Where the government took beneficial occupancy of a building after the scheduled completion date, it assessed liquidated damages against the contractor for late completion. This was on the basis that until the contractor successfully tested the fire alarm system it had installed, the work was not substantially complete. The contractor argued that the project was [...]
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