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.

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