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Subcontractor Loses Attempt To Bypass Mediation Requirements Subcontractors

Wednesday, April 04, 2007 12:00 pm

Subcontractor Loses Attempt To Bypass Mediation Requirements Subcontractors

A federal district court judge required that a subcontractor abide by all of the subcontractor's terms and exhaust all of its remedies before filing a lawsuit against the contractor.

The University of Kansas Hospital Authority (Owner) entered into a contract with United Excel Corporation (UEC) for improvements to the central utility plant at the university's medical center (prime contract). UEC subcontracted with U.S. Engineering Company, Inc. to provide labor, materials, equipment and supervision of the mechanical systems' installation.

On May 16, 2006, U.S. Engineering submitted a claim to UEC based on UEC's failure to respond to its requests for information or clarification related to the drawings and specifications, which U.S. Engineering said were incomplete, vague and incorrect.

After waiting five mont [...]

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