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Contractor's Actions Caused Cost Overruns; Breach Of Contract Damages Upheld

Friday, May 04, 2007 12:05 pm

Contractor's Actions Caused Cost Overruns; Breach Of Contract Damages Upheld

The Fourteenth District of the Court of Appeals of Texas upheld the damages entered against a contractor in a subcontractor's favor.

A school district hired Gilbane Building Company (Gilbane) as general contractor for two building projects. Gilbane subcontracted the electrical work to Two Turners Electric Company (Turner). There was an absolute deadline on the projects of which Turner was aware. Gilbane made several decisions that impacted Turner's performance, causing delays and forcing Turner to work overtime and hire additional workers. Turner notified Gilbane of the additional costs and submitted a claim for payment. Gilbane did not present Turner's cla [...]

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