A contractor was performing design, construction and construction management services for a five-story motel project. The masonry contractor placed hollow concrete blocks without proper rebar reinforcement as specified in the plans. The owner discovered the improper construction and demanded the structure, now at the second floor, be torn down and rebuilt according to the specs. The masonry subcontractor was not able to pay the $1 million reconstruction costs, leaving the general contractor/construction manager responsible to pay.
This is a claim scenario developed from a single claim or several claims and has been developed for illustrative purposes only.