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...

Assignee of Contract Indemnification Rights under a Design-Build Contract Stands in Shoes of Indemnitee and is Entitled to Recover Defense Costs

by Kent Holland | Jan 3, 2012 | indemnification clause, Newsletter Article

Where  a firm (Parsons Infrastructure) entered into a contract to design and construct a soda ash processing plant for Kerr-McGee Chemical Corp (KM) and agreed to provide KM with a defense and indemnity against losses arising out of negligent performance of its work, ...

Expert Survey of Small Sample of Walls Sufficient to Justify Opinion that Much Larger Area of Walls Must be Torn out and Replaced by Design-Builder for Failing to Meet Specifications for Rebar

by Kent Holland | Jan 3, 2012 | Newsletter Article

Where a design-builder filed suit against the project owner (animal fee manufacturing plant) to collect the balance of fee that was being withheld, the owner countersued for almost $2 million alleging that contractor breached the contract’s requirements for concrete...