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Parties Ignored Contract And Abandoned Fixed Price Scope Of Work; Payment

Sunday, October 03, 2004 02:54 pm

 
Parties Ignored Contract And Abandoned Fixed Price Scope Of Work; Payment

A federal appeals court has ruled that parties abandoned a fixed-price contract by ignoring the scope of work, the schedule, the payment terms, and the change order process. A terminated subcontractor recovered the reasonable value of its work.

The Procter & Gamble Company awarded a contract to the joint venture of Fru-Con Corp. and Fluor Daniel, Inc. to design and build a paper manufacturing complex in Cape Girardeau, Missouri. The joint venture then awarded a fixed-price subcontract to O'Brien & Gere Technical Services, Inc. (OBG) to design and construct six of the buildings in the complex.

OBG's work w [...]

 
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