Up in Smoke
Source: Berkley Construction Professional
A design-build contractor hired an engineer for a multi-building commercial office complex. The main tenant could not obtain a certificate of occupancy as the buildings failed their smoke tests due to the negligence of the engineer. Unfortunately, the design-build contractor permitted the design firm to include a limitation-of-liability clause in its contract which meant that the vast majority of the damages were paid by the design-build contractor. The total amount paid to resolve the claim was $550,000.