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Subcontractor Terminated After Agreeing To Work It Considered Problematic

Friday, January 04, 2008 02:12 pm

Subcontractor Terminated After Agreeing To Work It Considered Problematic

A subcontractor was terminated and ordered to pay reprocurement costs when performance problems surfaced after it agreed to work at a site it had considered overly complex.

In August 2001, Schwing American ("Schwing") hired International Production Specialists ("IPS") to fabricate and install five silos at a wastewater treatment plant in Waukegan, Illinois for the North Shore Sanitary District ("NSSD"). NSSD suspended the project four months after the initial purchase order between Schwing and IPS. It restarted the project approximately two years later at a different site several miles away.

Refusal to perform abandoned to avoid law [...]

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