General Contractor (GC)

Source: https://www.siriusgroup.com/

A GC was hired to build an athletic field using plans from a civil engineer who was retained by the owner to complete a preliminary design. At the owner’s insistence, the GC hired the civil engineer under a design-build contract. After the field was constructed, it was determined that the completed design was flawed and there
was a significant drainage problem causing the field to be unusable. The owner filed a lawsuit against the GC and the GC initiated a subrogation action against the civil engineer. The cost to repair the field at an accelerated schedule in order to minimize the owner’s business interruption costs was in excess of $400,000. The GC’s legal costs were in excess of $50,000.

Disclaimer: The information contained herein is intended for informational purposes only. Insurance coverage in any particular case will depend upon the type of policy in effect, the terms, conditions and exclusions in any such policy, and the facts of each unique situation. No representation is made that any specific insurance coverage would apply in the circumstances outlined herein. Please refer to the individual policy form for specific coverage details.

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