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Contractor Wins Full Contract Price And Lost Profits Due To Faulty Design

Wednesday, December 30, 2009 03:56 am


Design Defects -- Lost Profits

Granite Re, Inc. v. City of La Crescent

U.S. District Court for the District of Minnesota

2009 U.S. Dist. Lexis 83017 (September 11, 2009)

A city's sloppy design cost a contractor its bonding capacity and most of its business during the 18 months it took to resolve the ensuing court case. The City of La Crescent, Minnesota, hired MinnComm Utility Construction Co. (MinnComm) to install a water main and sewer force main between La Crescent and LaCrosse, Wisconsin. These mains had to run under the Mississippi River, so the parties agreed to use horizontal directional drilling (HDD) to install the pipes. The City hired MinnComm to install the mains only; it hired Yaggy Colby Associates (Yaggy Colby), an architectural firm, to design the project and prepare plans and specifications for MinnComm to follow. MinnComm's contract required it to [...]

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