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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A homeowner (Northridge) retained an architectural firm (JWFA) to provide design and contract administration services for the renovation of a residential townhouse complex. Leaks were found in the roofs shortly after construction was completed. It was not until several years later, however, that Northridge sued JWFA and its employee, Thomas Driscoll. The defendants filed a [...]
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Date of Substantial Completion Triggers Statute of Limitations period for Prime Contractor to Sue its Subcontractor
ConstructionRisk.com Report Vol. #12, Issue #1
See article in the following topic indices:
Statute of Limitations,Substantial Completion
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The prime contract between the project owner and general contractor included a provision stating that the statute of limitations for filing all claims would accrue on the date of substantial completion. Since the contract between the prime and its subcontractors included a flow down provision incorporating the terms of the owner’s prime contract, the statute [...]
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$26.9 Million in Liquidated Damages Not a Windfall to Power Plant Owner
ConstructionRisk.com Report Vol. #12, Issue #3
See article in the following topic indices:
Arbitration,Damages,Delay,Liquidated damages,Settlement Agreement,Substantial Completion
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On October 30, 2009, the DC Superior Court confirmed an August 17, 2009 arbitration award issued by a three-member arbitration panel in New Athens Generating Co. et al. v. Bechtel Power Corp. et al. The Panel awarded $26,950,000 in liquidated damages against the construction giant Bechtel Power Corporation, EPC contractor of a $533 million power [...]
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Economic Loss Doctrine Bars Contractor Suit against Engineer
ConstructionRisk.com Report Vol. #12, Issue #10
See article in the following topic indices:
Breach of Contract,Change Order,Economic Loss,Economic Loss Doctrine,Good faith and fair dealing,Misrepresentation,Negligence,Substantial Completion,tortious interference
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The economic loss doctrine was enforced by the Supreme Court of Wyoming to bar a general contractor’s (GC) complaint against a project engineer with whom it lacked privity of contract. The GC had a contract was with a town to construct water and wastewater lines. The city had a separate contract with an engineering firm [...]
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