In a string of recent trial and appellate decisions, courts have made it clear that contractual provisions governing the submission of claims will be enforced. Consistently strict enforcement of the parties’ contract obligations results in more predictable results and avoids the wasteful prosecution and defense of noncompliant claims. Those who neglect to adhere to such provisions can reasonably expect to have their claims barred.
In the 2015 U.S. District Court case of Electrical Contractors v. Pike, an electrical subcontractor sued a general contractor for breach of contract arising out of a school renovation in Norwich. The subcontractor claimed increased labor costs during the third phase of the project based on alleged mismanagement by the general contractor, an altered construction schedule and the resulting need for an increased workforce. The general contractor denied the subcontractor’s labor inefficiency claim on the basis of numerous contractual provisions, including its failure to give timely notice of a claim and its execution of periodic lien waivers.
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