A contractor designed and installed mechanical, electrical, plumbing (MEP) and fire sprinkler systems on a hotel project. Design errors in excess of $9 million were alleged by the project owner because the fire suppression system was found not to be in compliance with code and the electrical distribution system did not work properly. The MEP contractor did not carry professional liability insurance and was forced to seek bankruptcy protection.
A general contractor was retained to construct a retail center using the design-build delivery system. The GC entered into an agreement with a design professional to provide the design for the project. The contractor secured indemnification and hold harmless agreements from the design professional. During construction, it was discovered that the design professional had erred laying out the site plan resulting in the retail center sitting several inches above the existing roadways. Correction of the problem was estimated to cost more than $1million. The contractor made a demand under the indemnification and hold harmless provisions of the design professional’s contract. Unfortunately, the design professional declared bankruptcy and the general contractor remained professionally liable to the project owner.
A contractor was hired to act as an at-risk construction manager on a casino residence tower. The tower was estimated to be able to produce a gross income of $45,000 per floor per week from rental income. Additionally, gambling gains from the residents of the rooms was estimated to be $400,000 per floor per week. Time was of the essence for this project. Due to scheduling errors committed by the CM, the tower was completed four months behind schedule. The contractor was determined to be professionally liable for the delay and damages of $1,750,000.
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