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'Temporary Settlement' Of Delay Costs Doesn't Prevent Sub From Later Suing For Full Damages

Friday, March 19, 2010 02:06 am


Change Orders

Eldeco, Inc. v. LPS Constr. Co

., 2009 U.S. Dist. Lexis

111631 (Dec. 1, 2009)

A subcontractor could sue the prime contractor for extended field overhead costs (EFOCs) even though the subcontract did not specifically provide for them because the prime contractor approved change orders for EFOCs.

General contractor LPS Construction Company (LPS) hired electrical subcontractor Eldeco, Inc. (Eldeco) on a project to build the Alvin S. Glenn Detention Center inRichland County, South Carolina. XL Specialty Insurance (XL Insurance) provided a labor and materials bond for the project. Under the original subcontract, LPS agreed to pay Eldeco $2.3 million for electrical work.

The project got a late start, and LPS did not substantially complete the project until more than two-and-a-half years after the original finish date. During the project, Eldeco expressed concern to LPS about the additional [...]

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