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Prime Contractor Not Liable For Delay Of Sub Delay; Subcontractors

Monday, June 02, 2003 02:58 pm

 
Prime Contractor Not Liable For Delay Of Sub Delay; Subcontractors

A federal court of appeals has ruled that under New York law, a prime contractor is not liable for a subcontractor's delay damages if the delay was caused by the project owner's breach of contract.

Aspen Knolls Construction Corp. awarded a contract to Regional Building Systems (RBS) to manufacture, deliver and erect 100 modular housing units on property owned by Aspen Knolls in Staten Island, New York. RBS then awarded a subcontract to Bedford Construction Corp. to transport and erect the units.

During the course of the project, Aspen Knolls experienced financial difficulties. A [...]

 
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