Legal Question in Construction Law in Virginia
credit for unpaid price
contractor installed a heating system in an office building and did such poor work as to be liable to owner for $250,000.Owner has withheld $150,000 of the contract price.How much does contractor owe owner?$250,000 or only $150,000.
3 Answers from Attorneys
Re: credit for unpaid price
Well at best, based on your numbers neither. It would be only a $100,000 at best. The facts assume liability to the owner in the first instance. How do we know this to be true? What did the contractor do and was it reasonable? You can contact me.
Re: credit for unpaid price
Assuming there is sufficient evidence to PROVE that the contractor owes anything to the owner, the number would be $100,000 ($250K in damages minus $150K withheld from payment).
Just because the owner THINKS that contractor did poor work and owes $250K doesn't make it necessarily true. The contractor may disagree and decide to sue. That's what judges and juries are for.
Re: credit for unpaid price
Assuming that the office building is located in Virginia and that the contract for its construction was executed under the laws of the Commonwealth, you would be well advised to arrange for a consultation with a Virginia attorney versed in construction law issues as well as the law of contract.
As to how much one of the parties may owe the other(or vice versa)and what legal principles might be applicable to the dispute such as quantum meruit performance, I would not hazard an estimate without a much more detailed knowledge of the relevant facts applicable to this dispute.
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