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.

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