Indemnification Clause Requires Subcontractor to Indemnify Prime Contractor Regardless of Finding that Sub was not Negligent, and the Additional Insured Endorsement Requires Insurer to Cover the Prime for Damages not Caused by Sub’s Negligence

by Kent Holland | Mar 16, 2012 | indemnification clause, Newsletter Article

Where a pipeline was damaged when it was struck by sheeting being installed by a sub-subcontractor while installing lift stations along a pipeline previously installed by the prime contractor, the sub-subcontractor was found to be liable to its client (ECI...

Liquidated Damages Properly Assessed against Design-Builder Without Regard to Whether Excessive Compared to Actual Damages

by Kent Holland | Jan 12, 2012 | Newsletter Article

Where a design-builder (“contractor”) was assessed liquidated damages by the Contracting Officer under a U.S. Coast Guard contract for the design and construction of prefabricated metal buildings, the contractor filed suit against the Government seeking remission of...

Contractor Cannot Recover for Extra Work Performed without Change Order Approved by Authorized Officials

by Kent Holland | Jan 12, 2012 | Newsletter Article

A design-build contractor that entered into a fixed-price contract to upgrade the heating, air conditioning and ventilation (HVAC) system in college dormitories satisfactorily performed all the work it was contracted to do, but also performed significant additional...

Engineer Required to Indemnify Client for Costs of First Party Claim, Including Attorneys Fees to Extent Attributable to Engineer

by Kent Holland | Jan 12, 2012 | indemnification clause, Newsletter Article

Pursuant to a contractual indemnification clause, a trial court awarded damages of $810,000 in attorneys fees against an engineer in favor of a project owner, Wal-Mart Stores, Inc., on a jury verdict of $48,600 in actual property damages.  Wal-Mart’s first party claim...

“Pay-If-Paid Clause” Enforced as Condition Precedent to Subcontractor Right to Payment

by Kent Holland | Jan 12, 2012 | Newsletter Article

A “pay-if-paid” clause was enforceable to deprive a subcontractor (Sub) to sue the general contractor (GC) for withheld retainage where the project owner, a condominium developer, failed to pay the balance it owed to the general contractor which would have included...

Contractor Permitted to Sue Architect for Implied Warranty of Specifications

by Kent Holland | Jan 4, 2012 | Newsletter Article, standard of care

A Builder/Contractor that was building a house for a client/homeowner, used architectural plans that were drafted by an architect under contract with the homeowner, was permitted to sue the architect (with whom it had no independent contract) for breach of implied...