HomeMy WebLinkAbout2082 labor or materials or equipment. In this ,case, the owner had
no architect and the architect who had signed the certificate of
payment for Draw No. 12 was an architect for a savings and loan
association. Article 9, which is the typewritten provisions of
the contract and not the printed AIA general Conditions, provides
that anything to be done to the satisfaction or approval of the
architect under the general conditions of the contract may instead, f
at the option of the owner, be performed or exercised by or done
to the satisfaction or approval of the owner. Article 7.3 of the
typewritten provisions of the contract provides that in the event
of inconsistency or ambiguity of the contract documents, the
documents shall be controlled in the following order of priority:
(1) this agreement; (2) supplemental conditions; (3) general
conditions; (4) specifications; and (5) plans. Therefore, Article
9 of this agreement which provides that the owner can be substi-
tuted for the architect, allows the owner to nullify any certifi-
cate for payment previously issued in the event there is reasonable
evidence indicating probable filing of such claims or failure of
the contractor to make payments properly to subcontractors or for
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labor, materials or equipment as provided in Section 9.6 of the
I~ general conditions. In this case, HILP as the owner, had reason-
' able evidence from a subcontractor, Deerfield, that indicated a
lien would be filed upon its behalf. Thus, HILP properly stopped
payment on the $233,068 check and had authority to cancel certi-
ficate for Draw No. 12. Deerfield subsequently filed its claim
of lien on March 6; 1978.
After payment was stopped on the $233,068 check on
March 2 1978 Olo istics was iven a chance to co lete the
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project but failed to do so and abandoned the project . It was ~
s necessary to hire outside contractors to complete the project.
The original contract price for this project was $2,388,000,
plus change orders of $4,565.00, for a total of $2,392,565. The
total actual costs paid by HILP to Ologistics and the outside
contractors to finish this project was $2,595,028. This resulted
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