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Given Facts: The Architect was hired to create drawings to construct a building The Contractor says the drawings were defective The Owner failed to make

Given Facts:

The Architect was hired to create drawings to construct a building

The Contractor says the drawings were defective

The Owner failed to make sure fixtures and equipment for the building were delivered on time

The Contractor was the winning bidder in a competitive bid process

The Contractor now wants $1,000,000 additional compensation to cover the related cost overruns.

We have been hired as consultants by the attorneys representing the Owners to assess the Contractor's claims to see if they have any merit. In order to come to an informed conclusion, we must consider specific information pertaining to the situation:

  • identify Performance Obligations in the Contract with the Architect
  • Identify Performance Obligations in the Contract with the Contractor
  • what is the Architect's Transaction Price and how is it Allocated to the Performance Obligations
  • what is the Contractor's Transaction Price and how is it Allocated to the Performance Obligations

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