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Owner Assumed Responsibility For Subcontractor Subcontractors; Overhead

Monday, May 03, 2004 01:00 pm

Owner Assumed Responsibility For Subcontractor Subcontractors; Overhead

A California court has ruled that a prime contractor was not responsible for the work of a subcontractor after the project owner issued a change order assuming direction of the sub's work.

Robert Huddleston awarded a contract to Shufelberger Construction, Inc. to expand a motel in Trinity County. The fixed-price contract incorporated a proposal submitted by the contractor and included a line item for "overhead and profit' which Shufelberger had priced at $54,667.

The project was plagued by numerous changes and mounting friction between Huddleston and his contractor. [...]

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