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A Prior Working Relationship Is Not Enough To Establish Agency In The Current Project

Sunday, March 04, 2007 11:37 am

A Prior Working Relationship Is Not Enough To Establish Agency In The Current Project

When the evidence does not support a finding that a trade manager had actual or apparent authority to act for the general contractor, a sub that contracts with the trade manager cannot turn to the general contractor to recover delay damages, a federal court says.

Banc One Building Corp. was the general contractor on a project to build two data centers. Banc One hired Tishman Construction of Maryland as construction manager and Banc One's agent for the projects. Banc One also contracted with Forest Electric to serve as the trade manager for electrical work. Tishman and Forest entered into a trade manager agreement setting out the parties' responsibilities and understandings.

Forest subcontra [...]

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