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Jilted Subcontractor Recovers Lost Profit Subcontractors; Profit

Tuesday, August 09, 2005 03:00 pm


An Ohio court has ruled that a subcontract agreement was sufficiently specific to bind the prime contractor. The subcontractor recovered lost profit after it was not allowed to perform the work.

Vermillion Shores Development Group planned to develop a commercial and residential complex. Pinewood Construction, Inc. was the general contractor. Pinewood solicited subcontractor quotations for the concrete roadway work.

Smith Paving & Excavating, Inc. submitted a fixedprice quotation to Pinewood. At that time, many aspects of the drawings and specifications were incomplete. And Vermillion had not yet obtained necessary permits and ap [...]

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