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Sub-Contractor Delay Change Order Claim Resolution

Project # 10004.XP

Sub-Contractor Delay Change Order Claim Resolution

VERTEX served as the construction expert witness on behalf of a structural concrete subcontractor who was in a dispute with a general contractor. Specifically, the case involved delay and disputed change orders during the construction of a private luxury mid-rise condominium project in San Diego’s Banker’s Hill neighborhood.

After work was completed on the project, the general contractor refused to pay the subcontractor for extra work and the earned contract balance. They issued numerous disputed change orders and claimed that delays to the structural concrete work delayed the project, resulting in losses to the general contractor greater than any amount due to subcontractor. The law firm perfected mechanic’s lien and stop payment notice claims to secure the subcontractor’s claim, both of which were bonded by the general contractor. The subcontractor sued the general contractor and its surety for recovery.

VERTEX assisted with the review and analysis of the value of the subcontractor’s work to establish the reasonable value of its lien claim. VERTEX also reviewed and opined as to the propriety of numerous extra work change orders that were submitted by the subcontractor and the validity of the contractor’s deductive change orders.

The case eventually went to trial, and VERTEX’s Ted Bumgardner testified about general contractor administration and standards of care for processing change orders and complying with subcontract terms, including the importance of proper notice. The subcontractor was seeking $400,000 in principal recovery and to defeat back charges in excess of that amount.

The result was a resounding success. In a 12-0 verdict, the jury sided with the subcontractor, awarding them the full amount they asked for in their claim. The general contractor received nothing.

After pre-judgment interest, attorneys’ fees, and expert fees, the final judgment was just over $1.15 million in favor of the subcontractor and that entire amount was collected from the general contractor and its surety.

To learn more about VERTEX’s Construction Forensic Consulting and Expert Witness Services, or to speak with a Construction Expert, call 888.298.5162 or submit an inquiry.

This project was completed by Xpera Group which is now part of The Vertex Companies, Inc.

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