October 29, 2007

INCREASED COSTS CAUSED BY PUBLIC PROJECT OWNER’S FAILURE TO INFORM

Court of Appeals of Texas, First District

A contractor digs up more than just soil when it begins a sewer rehabilitation project—it digs up trouble with a neighborhood that had filed a lawsuit over alleged contaminated soil. Because the public owner failed to disclose the lawsuit, it must cover the contractor’s increased costs despite the state’s sovereign immunity statute.

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