In an AIA A-107 contract for a renovation job a Schedule of Values is often included. If the Contractor walks off the job would he be responsible to pay the Owner for just for the cost of the unfinished work listed in the SOV (assuming that he walked off with no cause)? Or would he be responsible for what the Owner has to pay another contractor to complete the work if it's more than the SOV? My question is really related to the practical definition of an SOV. If an Owner and a Contractor agree to a line item value in an SOV that later proves to be inaccurate, what ramifications can result? For example, let's say that the total, agreed cost for the job is $800,000 and the line item in the SOV for wood flooring is listed incorrectly at $5,000 when the correct value is ultimately found to be $50,000. If the Contractor resigns before doing any flooring work, would he owe the Owner $5,000 or $50,000?
Generally, the completion costs of the contract as a whole is the typical measure of damages, and not so much the SOV. But of course, there can be specifics i nthis particular contract that changes that general approach.
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