The firm’s client was the prime contractor on a highway facility rehabilitation project for the California Department of Transportation. The plumbing subcontractor on the project defaulted after performing layout and initial rough-in, resulting in rework, takeover and delay costs to the prime contractor. Notwithstanding the default, the subcontractor sought additional payment from the prime contractor, alleging it was constructively terminated and that the prime contractor violated Caltrans’ Buy America requirements.
The firm promptly investigated and refuted the Buy America allegations, preserving the prime contractor’s relationship with Caltrans. The firm also tendered the prime contractor’s costs (including time-related overhead) to the subcontractor’s general liability insurance carrier, based on property damage/rework arising out of improper rough-in by the subcontractor. The insurer agreed to participate in an early mediation and, notwithstanding the subcontractor’s inability to pay, the firm obtained an insurance-funded recovery for the prime contractor without litigation.
Counsel: P. Randolph Finch Jr.