Delay Claims Against Third Parties
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| On a construction project, it is not always the fault of the owner or contractor when a delay occurs. Sometimes, the delay results from the action or inaction of a third party. A prime third party whose negligence can severely hamper the progress of a construction project is the architect or engineer. For example, consider the architect who provides the contractor with defective plans or who fails to timely give adequate instructions to the contractor regarding a change on the project.
When the architect or engineer delays work on the project, the affected contractor will generally seek relief from the owner who, in turn, will seek indemnification from the architect or engineer. A contractor may try to obtain damages directly from the design professional, but the states are not uniform in allowing the contractor a recovery. Those contractors receiving a positive outcome in this regard have generally proceeded under negligence and intentional tort causes of action.
When other contractors or suppliers cause delay on the project, those in privity of contract are generally the ones on the receiving end of the lawsuit. Thereafter, the party held accountable for the delay will seek indemnification from the party who actually caused the delay. For example, a general contractor is delayed from final completion of the project due to the inexcusable inaction of a subcontractor. The owner will file an action to recover from the general contractor for the delay -- the two being in privity of contract. The general contractor will then pursue a recovery from the guilty subcontractor based on indemnification principles. Copyright 2010 LexisNexis, a division of Reed Elsevier Inc. |