Question: A project owner issues a Design-Bid-Build contract to construct a shopping center. The contractor makes several sub-contract agreements with different specialty contractors. The contractor fails

  1. A project owner issues a Design-Bid-Build contract to construct a shopping center. The contractor makes several sub-contract agreements with different specialty contractors. The contractor fails to pay several subcontractors for their work. The subcontractors sue the owner because they have not been paid.
    1. Is the owner liable to the subcontractors for breach of contract? Why or why not?
    2. If the owner is not liable do the subcontractor's have any ability to recover their claims against the owner?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!