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Subcontract Was Commercially Impracticable Damages; Subcontractors

Wednesday, March 03, 2004 12:21 pm

Subcontract Was Commercially Impracticable Damages; Subcontractors

A federal court has ruled that improperly fabricated steel rendered performance of an erection subcontract commercially impracticable and excused the subcontractor's failure to perform. The sub recovered progress payments plus consequential damages in the form of "down-time" charges.

The City of Brookings, South Dakota, awarded a contract to Mills Construction, Inc. to build a multi-purpose arena. Mills purchased prefabricated steel for the building from American Buildings Company. Mills then subcontracted the erection of the steel to Wilma Miller, doing business as D [...]

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