Ebenal General, Inc., a Bellingham, Washington based contractor has racked up at least 35 lawsuits by subcontractors since 1999, with 14 of those lawsuits in just 2009 and 2010. That doesn't count the eleven times since 1998 that Ebenal has sued subcontractors to force them "to live up to their agreement," according to David Ebenal, owner of the construction company.
Statistics such as these are outside the norm for most general contractors. Contractors with business practices responsible for multiple lawsuits can be problematic for both subcontractors and owners.
Risks for Subcontractors: Subcontractors need to be knowledgeable about the integrity and practices of the general contractors they work for. One project where a contractor fails to pay a subcontractor can be the cause of a subcontractor going out of business.
Risks for Owners: Owners who hire general contractors with a poor record of subcontractor relationships and payments and a history of lawsuits can cause project completion to be delayed, often with substantial additional costs to the owner. Ebenal has recently failed to complete on time a dormitory project at Western Washington University in Bellingham.
Bidder Responsibility Criteria: In 2007, the Washington State Legislature adopted RCW 39.04.350 which provides public agencies with the right to establish supplemental bidder responsibility criteria to address issues such as having an excessive history of lawsuits and failure to pay subcontractors in a timely manner.
More Information: To read an article from The Western Front Online about Ebenal, click here.
Mike Purdy's Public Contracting Blog (© 2010 by Michael E. Purdy Associates)
http://PublicContracting.blogspot.com
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