Howard Contracting, Inc. v. G.A. MacDonald Construction Co.

Summary

A general contractor on a public works construction project is permitted by statute to recover damages arising out of delays attributable to a municipality’s acts or omissions, notwithstanding the municipality’s status as a charter city and a clause in the contract precluding an award of damages for delay. Further, a subcontractor on the project who seeks to prosecute a claim for delay damages on a pass-through basis has standing as an aggrieved party to appeal and is entitled to offer evidence to support the claim.

Background

I. Project

This case arises out of a public works contract relating to a construction project to rehabilitate the Venice Canals located in Los Angeles. The project consisted of improving the existing canal system by removing material from the canals and constructing soil retaining walls along the banks of the canals.

The project was owned and designed by the City of Los Angeles (City). Following a formal bidding process, G.A. MacDonald Construction Co., Inc., was awarded the general contract on the project. MacDonald Construction subcontracted portions of the work to two other contractors, Howard Contracting, Inc., and Soil Retention…