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Contractor Absorbs Subcontract Price Increase Changes-directed; Subcontractors

Saturday, April 09, 2005 02:40 pm

 
Contractor Absorbs Subcontract Price Increase Changes-directed; Subcontractors

A Michigan court has ruled that a contractor had no recourse against a project owner after the contractor agreed to a subcontract price increase. The contractor failed to follow procedures set forth in the prime contract. Commerce Township awarded a fixed-price contract to ABC Paving Co. to install new water lines. ABC elected to perform the trench work with its own forces, while subcontracting the horizontal directional drilling to River City Construction, Inc.

River City's proposal, which ABC accepted, quoted a unit price of $134 per linear foot. But the proposal a [...]

 
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