Penny Wise, Pound Foolish
Source: Berkley Construction Professional
A contractor designed a roof system for a specialized manufacturing facility and then subcontracted the construction to a specialty roofing contractor. After the facility was completed there were major issues with the roof system. The roofing product manufacturer declined the warranty due to the fact that it was installed without a vapor barrier. It was discovered that the contractor’s in-house designer changed the roof system to one without a vapor barrier due to budget issues. The designer didn’t conduct any due diligence that would have shown the new system was not appropriate for this facility. The contractor was responsible for the costs of a new roofing system. The total amount paid to resolve the claim was $750,000.