Consequential Damages And Offsets In Construction Disputes

On October 14, the Washington Court of Appeals issued a published opinion in Reecer Creek Excavating, LLC v. SRI-Rochlin Constr. JV, LLC. This suit stemmed from a March 2020 excavation subcontract on a housing project in Ellensburg. The parties agreed to handle extra work on a time-and-materials basis, with written change-orders required. After a brief COVID pause, Reecer Creek resumed work, submitted "Application #15" (paid), and then submitted "Application #16" for change-order work (unpaid). Reecer Creek stopped work, SRI finished portions with other contractors, and Reecer Creek filed a lien for $201,831.98. In arbitration, the arbitrator found breaches by both sides, awarded Reecer Creek retention and most of Application #16, offset the award for completion, repair, and survey overbilling, and also ordered Reecer Creek to defend and indemnify SRI for future fire-suppression claims.