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General Contractor vs. Sub-Contractor Claim Resolution

Project # 10011.XP

General Contractor vs. Sub-Contractor Claim Resolution, San Bernardino County Superior Court

This project involved providing expert witness testimony for a construction matter in southern California. The plaintiff, a leading general contractor, was involved in a drawn-out contract dispute with one of its subcontractors over the construction of a new timeshare project in Big Bear, CA. The general contractor was represented by a premier construction litigation practice in San Diego.

The general contractor hired a single subcontractor to perform framing, structural steel, and concrete work for a multi-family timeshare development in Big Bear. The general contractor contended that the subcontractor had significant manpower and quality of work issues on the project, and after failing to cure the problems as directed, the subcontractor was terminated.

In order to get the project back on track, the general contractor then hired several different subcontractors to complete the work of the original subcontractor, as well as fix all of the work that was deemed deficient.

In the end, the general contractor contended it was owed roughly $3.9 million in damages. The subcontractor filed a counter claim, asserting they were owed roughly $1.8 million for the contract balance, change order work, and other damages.

While the subcontractor was terminated in 2015, the two parties had been unable to come to a resolution on the matter, and in late 2018, the case went to trial in San Bernardino County Superior Court.

VERTEX’s construction expert, Ted Bumgardner, reviewed and evaluated the work performed and the work that remained, and prepared testimony to the reasonableness of the costs incurred. This was no small task, given the scope and magnitude of the project, as well as the time that had passed since the dispute first began. Testimony preparation included assessment/tracking of daily work logs of the new subcontractors to document whether each task was new work, repair work, or extra work for cost allocation assessments.

Based on review of the costs, as well as the testimony of various witnesses, Mr. Bumgardner opined on the reasonableness of costs incurred and on the method and manner in which the general contractor completed and remedied the work.

After a seven-week trial, the jury ultimately agreed, awarding the general contractor approximately $3.8 million—96% of the damages that were requested. The subcontractor received nothing in its counter claim.

To learn more about VERTEX’s Construction Expert Witness Services or to speak with one of our Construction Experts, call 888.298.5162 or submit an inquiry.

This project was completed by Ted Bumgardner, founder of Xpera Group. Xpera Group was acquired by The Vertex Companies, Inc. in 2020.

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