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Managers Can Be Liable For Contractor Responsibilities

Monday, May 02, 2011 05:57 am


Contracts - Defective Construction

All Metals Fabricating, Inc. v. Foster General Contracting, Inc., 2011 Tex. App. Lexis 1283 (Feb. 23, 2011)

A contractor couldn?t duck responsibility for poor workmanship by claiming it was only performing the less accountable job of a construction manager.

All Metals Fabricating, Inc. (All Metals) sued FosterGeneral Contracting, Inc. (Foster) for contract breach and breach of implied warranty after foundation movement rendered unstable a building Foster constructed for All Metals? metal fabrication facility in Allen, Texas. All Metals claimed that the property?s settlement and heaving was the result of Foster?s failure to complete the pre-construction dirt and fill work in a workmanlike manner (i.e. by one who has the necessary knowledge, training and experience). Foster challenged the suit, claiming All Metals was neither a party nor a third-party beneficiary to the contract-and that, as construction manager, Foster didn?t have such a high standard of workmanlike behavior to live up to.

The project contract identified the "construction manager" as Foster, the "project" as All Metals, and the "owner" as BEBDT Realty, Ltd. (BEBDT). Thus, Foster alleged that BEBDT (though it didn?t sign the contract) was a party [...]

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