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Owner's Conduct Waived Condition Precedent To Payment

Tuesday, May 01, 2012 04:41 am

 

Payment -- Conditions Precedent

Town of Stratford v. A. Secondino and Son, Inc., 2012 Conn. App. Lexis 101 (Feb. 28, 2012)

By getting between its claims administrator and its contractor, an owner waived a payment procedure that required the administrator's approval.

The town of Stratford, Connecticut hired A. Secondino & Sons, Inc. (Secondino) to construct a new fire headquarters building for $5.6 million. The parties disputed the town's withholding of money due based on the contractor's alleged failure to comply with the contract's condition precedent to payment. A trial court found in the contractor's favor, as did the appellate court.

After substantial completion of the project, there remained several punch list items to be addressed. The town claimed they amounted to $60,000 and, in accordance with the contract, withheld from Secondino twice that amount. Secondino contended that the remaining work amounted to just $3,675 and offered to promptly complete the punch work once the retainage was reduced to $7,350. The town refused and initiated litigation, claiming that the contractor had breached the contract by failing to correct no [...]

 
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