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No Pay For Extra Work Without Written Change Order

Friday, September 21, 2012 05:52 am

 

Conditions Precedent -- Change Order

Process Engineers & Constr., Inc. v. DiGregorio, Inc., 2012 R. I. Super. Lexis 112 (July 13, 2012)

A subcontractor's contract breach suit failed because several conditions precedent to payment on change orders had not been fulfilled. The sub did, however, prevail on its claim for additional costs associated with replacing a damaged pipe.

DiGregorio, Inc. (DiGregorio) was the excavation sub on a Brown University project to replace the underground piping system that delivers hot, high-pressure water to the university's heating plant. DiGregorio hired Process Engineers & Construction, Inc. (Process) to install the new pipe. Mid-project, sand infiltrated the heating plant after insulation surrounding one of the pipes was flooded at both ends. DiGregorio and Process replaced pieces of deteriorated pipe at a substantial cost, and the parties disputed who was responsible for the wet insulation. Process sued DiGregorio for contract breach, claiming that it had not been paid for changed work--and quantum meruit for replacing the damaged pipe.

The subcontract made plain (by incorporating by reference a standard AIA contract) that the pa [...]

 
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