Case #4

Mega Manufacturer, Inc. (MMI) sought to build a new factory. MMI retained

Awesome Architects, Inc. (AAI), an architectural firm, to create the plans

and specifications. Based upon this design, MMI entered into a $2 million fixed-price contract with Prime Builder, Inc. Prime Builder hired several subcontractors, including a excavation

subcontractor (Excavator) and a window installer (Window Wizard, Inc.). Under the

design contract, AAI was to inspect the work to determine the contractor's entitlement

to progress payments. The contract excluded AA's responsibility for the contractor's

means and methods of performance. The project suffered from heavy rains. During one inspection, the AAI employee (a

licensed architect) measured the amount of excavation work completed. He noticed

the trench where Excavator's employees were working was water logged, but he said

nothing. Shortly after he left, the trench caved in, injuring an Excavator employee.

Late on a Friday, Window Wizard installed several windows with wooden frames.

The employee forgot to caulk the windows. That weekend, a hurricane struck and the

project was not resumed until the following week. When Window Wizard returned, it

discovered the window frames had begun to rot. In addition, the drywall surrounding

the windows were also molding. As a result (1) Prime Builder replaced the drywall and

(2) Window Wizard replaced the windows.

Question:

Please evaluate this scenario from a legal perspective. I will be looking for legal terms and jargon, case law justification and citation of source of your response. You need to include at minimum a statement and/or discussion on the source or statement of the problem; rights and duties; sub-bids rights/issues; bidding bargaining situations and penalties/notices/claims/contracts. Please provide some original thought. Please provide no more than 2 graphs or tables if applicable.