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Subcontract Delay Disclaimers Not Enforced Disclaimers; Delay-damages

Monday, May 03, 2004 01:00 pm

Subcontract Delay Disclaimers Not Enforced Disclaimers; Delay-damages

A Georgia court has refused to enforce several subcontract clauses which appeared to disclaim the prime contractor's liability for delay and disruption.

R. W. Allen Beers Construction, prime contractor on a hospital project in Augusta, subcontracted the HVAC and plumbing work to Atlantic Coast Mechanical (ACM). The subcontractor later submitted a request for an equitable adjustment (REA) seeking increased labor costs allegedly incurred as a result of Beers' mismanagement of the project. Beers denied the request.

ACM claimed that the concrete had been poured behind schedule, causing ACM to per [...]

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