The party supplying design plans and specifications can be held liable for defects in those documents under the concept of Implied Warranty.
The party so supplying is held to the implied warranty that the contractor can follow the contract documents and perform without undue expense. The warranty flows from the drafting party’s contractual duty to provide drawings and specifications that are reasonably free from defects.
For a contractor to recover under the Implied Warranty of specifications, it must prove that:
- It reasonably relied upon the defective specifications;
- It fully complied with the defective specifications; and
- That the defective specifications caused increased costs.