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A Fire Destroying More Than Half of the Project Is Not a Cardinal Change Where the Parties Entered into a Separate Agreement to Cover the Fire Remediation Work

IES Commercial, Inc. v. Manhattan Torcon, A Joint Venture, 2018 U.S. Dist. LEXIS 164973 (D. Md. Sept. 26, 2018)

Author: Kristopher Berr

11/29/2018

Read the full post at Constructlaw

A Fire Destroying More Than Half of the Project Is Not a Cardinal Change Where the Parties Entered into a Separate Agreement to Cover the Fire Remediation Work

In 2009, the Army Corps of Engineers hired Manhattan Torcon Joint Venture (MT) as general contractor to build a biological research facility at Fort Detrick, Maryland. MT subcontracted with IES Commercial, Inc. (IES) to perform the electrical system work.

In August 2013, after IES had completed over 90 percent of its work, a fire destroyed or damaged more than half of the facility, including significant portions of IES’s work. MT ordered IES to perform significant fire remediation work in addition to the remainder of its base contract work. In November 2013, IES and MT entered into a subcontract amendment referred to as the “Fire Rider,” which included an agreed rate schedule for the fire remediation work, along with a procedure by which IES would perform work at MT’s direction, submit daily work tickets and monthly invoices, and be paid within ten days after MT received payment from its insurer.

The parties performed under the Fire Rider for over four years. 

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