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Failure To Properly Supervise Project Is An Error That Stings 10 Years Later

Friday, March 19, 2010 02:01 am

 

Contract Breach

Powers & Sons Construction Company, Inc. v. Healthy

East Chicago

, 2009 Ind. App. Lexis 2842 (Dec. 30, 2009)

A contractor's obligations to a project stem from the contract, so beware state statutes of limitation that allow contract breach claims many years after project completion.

Healthy East Chicago, Inc. (HEC) hired Powers & Sons Construction Company, Inc. (Powers) in December 1997 as the construction manager on a health services facility project in East Chicago, Indiana. After project completion in 1998, cracks appeared in the floors, walls and ceilings of the building. In 2000, Powers told HEC that "continuing concrete slab movement should be considered normal," and building inspections were conducted in 2002, 2004, 2005 and 2006. Finally, in 2007, HEC charged Powers with breach of contract. HEC claimed Powers knew or sho [...]

 
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