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residential client hired a general contractor (GC) to construct a major $3 million executive home. The client contracted separately with a reputable architect for the design. After the permit was obtained, the architect’s contract was closed out. During the course of construction, the owner and the city had requested several changes, but none of them were formalized into the contract. Many of these were additive but some were also deductive changes. Many of the changes were due to building code changes. Because the general contractor understood this to be a time and materials (T&M) project, they had not felt it was necessary to submit change orders against a “budgeted” amount. The GC had previously invoiced and received 67% of the original budget, or $2 million, from the owner. These invoices were all reviewed and approved by the lender. At approximately 90% completion, the GC invoiced the owner for the full 100% amount of the original $3 million estimate. When pressed, the GC indicated that the project will overrun the budget by approximately $500,000.
The owner and the GC disagree. The owner refuses to approve the current pay request. Can he do that? The GC pulls off the job and refuses to do any more work until the owner agrees to the revised budget of $3.5 million and pays the $1 million now due. Can the contractor legally do that?
The owner dismisses the GC at this point. Both parties sue each other.
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- Assume Norton Enterprises hires Concrete Company to pour a new cement driveway for its main office building. Which of the following actions by Concrete Company would most likely create liability for Norton Enterprises? Assume Concrete Company is an independent contractor of Norton Enterprises. Group of answer choices Concrete Company removes materials from another company's driveway after failing to find the correct property line Concrete Company damages a parked car on the street when it unloads heavy equipment to be used on the job Concrete Company accidentally damages the city sewer system when installing the driveway Concrete Company removes materials from another company's driveway after being directed to by NortonCivil Engineering consulting firms that provide services to outlying communities are vulnerable to a number of factors that affect the financial condition of the communities, such as bond issues, real estate developments, etc. A small consulting firm entered into a fixed-price contract with a spec home builder, resulting in a stable income of $320,000 per year in years 1 through 4. At the end of that time, a mild recession slowed the development, so the parties signed another contract for $150,000 per year for two more years. Determine the present worth of the two contracts at an interest rate of 10% per year.Civil engineering consulting firms that provide services to outlying communities are vulnerable to a number of factors that affect the financial condition of the communities, such as bond issues, real estate developments, etc. A small consulting firm entered into a fixed-price contract with a spec home builder, resulting in a stable income of $390,000 per year in years 1 through 7. At the end of that time, a mild recession slowed the development, so the parties signed another contract for $185,000 per year for 5 more years. Determine the present worth of the two contracts at an interest rate of 13% per year. The present worth of the two contracts is determined to be?
