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Court Finds Default Termination of Subcontractor Wrongful Where Prime Contractor on Same Facts Obtained Relief for Itself from Owner

Prime contractors can find themselves caught between a subcontractor and the owner. Who does the prime contractor support when a subcontractor submits a controversial request for added time or a change order? Should the prime contractor champion its subcontractor’s request and, if so, how far? This article discusses a recent court decision addressed the situation, where the prime contractor rejected its subcontractor’s claim but on the same set of facts sought added time and costs for itself from the owner.