General Contractor (GC)

Source: Distinguished Programs

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 were in excess of $400,000. The GC’s legal costs were in excess of $50,000.

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