Not Just Another Day at the “Breach”: Risk Allocation in a Specialized Construction Climate

As construction projects become more complex and specialized, general contractors increasingly rely on subcontractors while remaining contractually responsible for work they cannot control or evaluate. A recent case involving elevator installation showed this imbalance starkly: despite having no authority over equipment selection, subcontractor choice, or installation methods, the general contractor was found liable for defective work performed by a regulated specialist. The outcome highlights the critical need for contractors to proactively manage and allocate risk through careful contract drafting, warranties, waivers, and bonding at the outset of a project.