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A Dangerous Myth: That a Great Subcontract Will Prevent Claims on a Poorly-Executed Project

from JD Supra Advisor

Well-drafted, legally-enforceable agreements are key to any construction company’s risk management strategy. This is especially true for subcontracts, which serve as a contractor’s critical tool to coordinate a successful project among multiple subcontractors with varied scopes of work. But, as emphasized by the recent opinion Rai Industrial Fabricators, LLC v. Federal Insurance Company, a strict and unambiguous subcontract may not protect the contractor from claims where the contractor’s actions fail to comply with the subcontract or are beyond the reasonable contemplation of the parties when executing the subcontract. more


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