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Work Left Unfinished By Original Contractor Was A 'Concealed Condition'

Monday, September 03, 2012 05:52 am


Extra Work

Song & Song Corp. v. Fine Art Constr. Co., LLC, et al., 2012 Tenn. App. Lexis 381 (June 14, 2012)

A property owner owed its contractor for additional work performed--work that had been left unperformed by the original contractor and was not included in the scope of the second contract.

Song & Song Corporation (Song) hired contractor Fine Art Construction Company, LLC (Fine Art) to complete construction of the first floor of a commercial building that the original contractor had built as a "shell," completing only the top floor. During the work, the county issued a stop work order because the required fire dampers had not been installed inside the ductwork that was above the first-floor ceiling. Song charged Fine Art with contract breach for failing to discover the lack of fire dampers. Fine Art countered that it was Song that had breached the contract by failing to pay the contractor $16,000 for installing the missing fire dampers--allegedly extra work. Both a trial court and an appellate court favored the contractor's argument.

As there was no way to tell whether the fire dampers were installed just by looking at the ductwork, their absence was discovered only after a [...]

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