Contracts Keyed to Barnettback
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After an extensive search, Paul purchased an ideal building site for the psychiatric treatment center he wanted to construct. He had very specific ideas about the layout of the buildings and the materials to be used therein, and spent several thousand dollars to have his architect translate these into detailed and complete building plans. Having had difficulty with contractors in the past, Paul had his lawyer prepare a written agreement that set forth the terms under which the treatment center would be built. After negotiating with Builders, Co., a large construction firm, the parties signed the agreement, which provided, among other things, that Builders would construct the project on Paul’s property according to the plans supplied by Paul’s architect, for a price of $2,750,000; $1,000,000 to be paid twelve months after commencement of construction, the remainder to be paid after Paul’s architect issues a certificate of compliance verifying that the center had been constructed in conformance with the plans he had provided.
Builder Co. completed construction of the psychiatric treatment center, but Paul’s architect refused to issue the certificate of compliance verifying that the construction had been in conformance with his plans. The architect’s stated reason for refusing to issue the certificate was that Builder, in putting on the center’s Spanish tile roofs, “used an inferior quality tile which will necessitate greatly increased repair and replacement costs.” Paul insisted on deducting a portion of the full contract price to cover the increased repair and replacements costs as estimated by his architect. Builder Co. has brought an action against Paul for the full contract price.
Will Builder prevail?Grading can be reviewed and adjusted.Grading can be reviewed and adjusted.