Westech Engineering, Inc. v. Clearwater Constructors, Inc.
835 S.W.2d 190 | Court of Appeals of Texas | 1992
What This Case Means for Subcontractors
WesTech Engineering agreed to supply wastewater treatment equipment meeting specific contract specifications for a City of Austin project. The equipment failed to meet those specifications, and Clearwater Constructors (the general contractor) had to buy replacement equipment elsewhere. The court ruled WesTech breached the contract and must pay Clearwater's costs to cover the shortfall. This case shows that when you bid equipment for a construction project, you're making an unconditional promise to deliver exactly what the specs require—no excuses.
Key Takeaways
- •When you submit a bid for equipment, you're legally bound to deliver items that meet the contract specifications. Failure to do so is breach of contract, even if your equipment was close to spec.
- •If your equipment fails to meet specs, the general contractor can buy replacement equipment from someone else and charge you the difference in cost (called 'cover costs'). You'll owe that money.
- •Make sure your bids clearly state any limitations or deviations from the specifications before you sign the contract. Once you agree to meet specs, you can't back out later.
WesTech unconditionally promised to supply wastewater equipment that met the specifications.
Frequently Asked Question
What happens if I supply equipment that doesn't quite meet the contract specifications?
You're in breach of contract. The general contractor can buy compliant equipment from another supplier and bill you for the difference in cost. You'll owe those 'cover costs' plus potentially other damages. Always deliver exactly what the specs require, or get a written change order before you deviate.
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