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Saturday, February 13, 2016

An architect hired an independent consultant to produce engineering drawings for work it was doing to

 February 13, 2016     No comments   

An architect hired an independent consultant to produce engineering drawings for work it was doing to remodel a brewery. From their preliminary negotiations, it became clear that the job would take at least 18 months to complete, so the consultant hired an assistant specifically for this project. The consultant told the architect he would charge ” street ” rates for his work, which is understood in the industry as meaning $65 per hour for his work and $40 per hour for work done by his assistant. The architect issued a purchase order for the work, but no rate was specified. The consultant submitted invoices for his work after 30 and 60 days, which the architect paid. Thereafter, the architect began complaining about the amount of the charges. He also told the consultant that the brewery was slow to pay him, which meant that all the subcontractors were facing delays in being paid. After 90 and 120 days invoices went unpaid, the consultant stopped working and sued the architect and the brewery for the unpaid balance.

What are the issues? What are the strengths and weaknesses of the respective cases?
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