CASE #9

The Nally general contractor company on this project chose not to purchase the heating, refrigeration, ventilation, and air conditioning (HRVAC) equipment from the mechanical subcontractor, but rather they purchased it directly from the original equipment manufacturer (OEM). Why would a GC do this? The shop drawings were submitted and were per specifications. The submittal was approved and returned on time. The equipment was delivered on time, but because the HRVAC subcontractor had not yet mobilized on-site, the GC unloaded the mechanical units from the truck and hoisted them to location with the GC's own crane. The subcontractor connected the equipment after placement. The system was completed on schedule, but on a very hot design day, during HRVAC balancing, it is discovered that the units are not keeping up with air conditioning requirements. The labels are checked, and it is discovered that they are undersized by one-third from the specified units. The approved submittal does not match up with what has been installed.

Questions:

(NOTE: Answer all questions highlighted in yellow. Explain Your Answers in Detail.

Think Outside the box i.e. subsequent damages, countersuits)Use legal terminology and case law citations as much as possible. Please provide an example of a connection to textbook case

• Who is at fault? How could "active" quality control have prevented this from happening?
• How is it now resolved contractually (legally) and physically?