Source: Berkley Construction Professional

A general contractor subcontracted the installation of an HVAC system for an assisted living facility. The HVAC subcontractor submitted a value engineering alternative to the mechanical engineer who requested additional information before approving. The HVAC subcontractor did not provide the additional information and proceeded to order the equipment for the unapproved system. A routine inspection by a state agency found that the HVAC system  did not meet code. The costs to resolve the claim was $850,000.