Danger Sign For Overly Aggressive Construction Managers

Under normal circumstances, third-party, professional managers hired by owners to manage their construction projects feel that they are fairly well insulated from claims by the general contractor. The contractor doesn't have a contract with the manager to base a claim on. And, as a general rule, claims for a contractor's economic losses — the exact kinds of losses general contractors typically claim — cannot be made against such professional managers based on negligence. Thus, under normal circumstances, the general contractor would have no basis to make a claim against a construction manager.

Sometimes, though, circumstances are not normal. That appears to be what happened as described in a very recent opinion by the Lake County, Ohio, court of appeals (TRAX Constr. Co. v. Village of Reminderville). That court affirmed a lower court judgment in favor of the general contractor against a professional manager for almost $2 million, including an award of punitive