Question

A general contractor hired a subcontractor to furnish and install all of the equipment for a large pumping station. According to the contract between the general contractor and the owner, the operation of the pumps was to be guaranteed for one year. When the pumping station started to operate, certain defects in the pumps were discovered. To whom will the owner look for remedy (i.e., to repair the pumps), the general contractor or the subcontractor? Why?

Answer 1

As the contract between owner and general contractor was for 1 year workabililty any defect in operation will be liability of general contractor and owner will ask for solution from general contractor as he has made the contract with him only and not the subcontractor.

Now if the general contractor has made similar contract with subcontractor, General contractor will contact subcontractor for the remedy but owner will look for the remedy from contractor and the contractor will ask subcontractor for the remedy.