Which of the following types of claims may be brought against design professionals?
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The question pertains to legal claims that can be brought against design professionals, which typically include architects, engineers, and other professionals involved in designing structures or systems. Show more…
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A residential client hired a general contractor (GC) to construct a major $3 million executive home. The client contracted separately with a reputable architect for the design. After the permit was obtained, the architect’s contract was closed out. The contract authored by the contractor discussed in detail what was reimbursable but did not tie the GC to a fixed price. The $3 million estimate is referred to as a “budget” in the contract. The owner had assumed because of verbal discussions with the contractor prior to the contract execution, and because of early estimates provided by the GC on paper where the word “bid” was used, that this was a lump sum $3 million agreement. These discussions and estimates were not tied to or referenced in the contract. There was not a third-party owner’s representative or agency construction manager (CM) involved, and the owner had never been involved in a construction project. During the course of construction, the owner and the city had requested several changes, but none of them were formalized into the contract. Many of these were additive but some were also deductive changes. Many of the changes were due to building code changes. Because the general contractor understood this to be a time and materials (T&M) project, they had not felt it was necessary to submit change orders against a “budgeted” amount. The GC had previously invoiced and received 67% of the original budget, or $2 million, from the owner. These invoices were all reviewed and approved by the lender. At approximately 90% completion, the GC invoiced the owner for the full 100% amount of the original $3 million estimate. When pressed, the GC indicated that the project will overrun the budget by approximately $500,000. The owner and the GC disagree. The owner refuses to approve the current pay request. Can he do that? The GC pulls off the job and refuses to do any more work until the owner agrees to the revised budget of $3.5 million and pays the $1 million now due. Can the contractor legally do that? The owner dismisses the GC at this point. Both parties sue each other. How did this happen? Who is at fault? What should have been done to prevent this situation? What do they do now?
Dominador T.
If a sole proprietor is found negligent of an action, then that person could face:
William F.
Hi, I need help with Business Law Questions: "Jolie Glenn placed her 3-year-old daughter, Brittany, in a car with the engine running while it was parked in her garage with the garage door closed. Glenn went back into the house, sat down, and fell asleep. When she awoke, she realized that Brittany was not with her. Jolie went into the garage and saw that the garage door was closed. Brittany was in the car and had died as a result of carbon monoxide poisoning. Overhead Door Corporation had manufactured the garage door and the garage door opener used by Jolie to open and close the garage door. Malcolm Glenn, Jolie's ex-husband and Brittany's father, sued Overhead Door for strict liability, alleging design defect and failure to warn. Glenn argued that Overhead Door should have designed its garage door opener with a sensor that would determine when carbon monoxide had gotten too high in a garage and then alert the car owner. Glenn also alleged that Overhead Door had failed to warn a user of its garage door opener that if the car was left running and the garage door was closed, carbon monoxide could build up to dangerous levels in the garage. 1- Was Overhead Door liable for strict liability for either design defect or failure to warn? 2- Did Glenn act ethically in suing Overhead Door Corporation?
Jennifer S.
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