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The project involves work being performed at the fictitious Williamstown High School, located in Williamstown, Idaho. The project includes construction, renovation, and remodeling work at Williamstown High School (the “Project”).
Williamstown High School is one of three high schools owned by the Williamstown School District (the “District”). The contractor on the Project is Smith Construction. The project site is located on both the north and south sides of Powell Road (a six-lane road). The existing school building (Building A) is on the north side of Powell Road. The renovation work to be done to Building A includes installation of a new heating and air conditioning system, installation of various technology (including document cameras and Smartboards), and conversion of the existing gymnasium into classrooms. Additionally, District has recently purchased the parcel of property across Powell Road from Building A, on which was located a large warehouse (Building B), a large parking lot, and fifty acres of undeveloped land. Building B is to be removed and replaced with a newgymnasium, a new auditorium, a music room (with several adjoining practice rooms), and vocational training areas (a large kitchen area, metal shop, and a wood shop). Building B also is to house a large meeting room, which the District plans to make available as a community center. The Project also includes a new football field and stadium and several recreational sports fields, which are to be constructed on the undeveloped acreage and a currently paved storage area.

Today’s date is May 15, 2014. As of May 14, 2014, the following work has been performed on the following areas of the project:

• Installation of walking paths and sidewalks: Contract specification Section 26.08
(8.2.1)required the application of a “rough broom finish” to the concrete walking paths and sidewalks to be installed on the project. On April 12, 2014, Smith Construction submitted a sample of the “rough broom finish” that Carlisle Concrete would apply to the concrete walking paths and sidewalks. This finish was approved by Williamstown School District on April 19, 2014. On May 8 and 9, 2014, Carlisle Concrete placed the forms for the concrete walking paths and sidewalks on the Building A side of the road.

On May 10, 2014, Carlisle Concrete poured the concrete walking paths and sidewalks. On May 14, Sam Richardson requested an inspection of the walking paths and sidewalks. The inspection was scheduled for 10:00 a.m. on May 15.

• Installation of new heating and air conditioning system in Building A: On May 4,
2014, Jefferson Venting, LLC (the HVAC subcontractor) completed its removal of the ceiling tiles and grid from the suspended ceiling of the first floor classrooms of
Building A. The following day, on May 5, 2014, Jefferson began laying out the ductwork in the ceiling space to determine whether there were any obstructions or conflicts with other building systems. On May 8, 2013, Jefferson began installing ductwork in Building A. From May 8 through May 14, Jefferson installed ductwork in Classrooms 3-A, 3-B, 3-C, 3-D, 5 -A, and 5-B.
On May 15, 2014, Sam Richardson of Smith Construction held an on-site project meeting at 7:00 a.m. with the subcontractors’ representatives that were on-site that day to discuss the status of work being performed and what would be done that day. Jefferson Venting, LLC (the HVAC subcontractor) was to continue installing
HVAC ductwork in Building A. Carlisle Concrete was scheduled for an inspection of the concrete walking 2 paths and sidewalks around Building A, and was scheduled to install the formwork for the sidewalks leading from the secondary parking lot. Fieldstone was scheduled to begin installation of irrigation lines near
Building A. At 10:00 a.m., Sam Richardson and the foreman for Carlisle Concrete (Michael Edwards) met with Jim Andrews (Axelrod Design’s inspector) to inspect the concrete walkways and sidewalks that had been installed by Carlisle Concrete. After walking the distance of the paths and sidewalks, Jim Andrews informed Sam and Michael that he didn’t like the finish that Smith Construction had installed, and that Smith Construction would need to remove and replace the paths. Sam asked for clarification of why the paths were being rejected, indicating that Carlisle Concrete had applied the “rough broom finish” as required by the specifications and the approved submittal. Jim told Sam that he hadn’t seen the sample of the “rough broom finish” submitted by Smith Construction and approved by the District, but that he knew a “rough broom finish” when he saw a“rough broom finish,” and these paths did not have a “rough broom finish.” At 10:45 a.m., Sam, Jim, and
Michael walked back to the job trailer. At that time, Sam showed Jim the approved submittal for the “rough broom finish” applied to the paths. Although Jim agreed that the paths looked much like the approved sample, he reiterated his rejection of the paths and advised Sam that the finish of the paths and sidewalks needed to be significantly “smoother” than what Carlisle Concrete had applied.
After Jim left the job trailer, Sam’s phone rang. Sam’s friend from school, Steve Anderson, was on the line. Steve was also employed by Smith Construction as a project manager, and was working on a large office building project in Lakefield, Idaho. Steve asked Sam to explain the Contract requirements regarding the utilization of updated monthly schedules to support requests for extension of time. Steve explained that the Lakefield project was behind schedule as a result of the owner’s significant revisions to the project design. Steve indicated that he intended to request extensions of time for three different components of work on the
Lakefield project. Steve indicated to Sam that he didn’t have updated schedules for the project, which were required to prepare requests for extension of time, because the owner of the Lakefield project had consistently refused to meet with Steve to review or discuss the schedule updates that Steve had prepared and submitted.
Steve was seeking Sam’s advice on how to deal with the situation.
At 11:20 a.m., Sam Richardson received a call from Pat Jacobson of Fieldstone. While excavating for the new irrigation lines, Fieldstone had discovered an unmarked underground storage tank and piping. Pat reported that Fieldstone had excavated around the discovered tank and piping. Fieldstone determined that the tank and piping were not connected to any other source, and appeared to consist of a 10’x10’x10’ out-of-use tank that had held water and ten to twelve ten rusted pipes of varying lengths that had been discarded and buried. Pat asked Sam to meet him on the far side of the Building A property to confirm that Fieldstone could remove and discard the tank and piping. Sam asked Pat whether Fieldstone could work on another area of the project site, and asked Pat to stop work in the area until Sam could inspect the area. Pat indicated that
Fieldstone could relocate its crew to continue excavating in an area distant from where Fieldstone discovered the discarded tank and rusted piping. Sam agreed to meet with Pat later that afternoon, and indicated that he would call Pat with a time for the meeting. At 1:00 p.m., Sam Richardson met his former roommate, Fred Capshaw, for lunch: Fred worked for Mitsusaki Construction, and had been managing a project for them in Alaska. Fred told Sam that Mitsusaki was looking to hire another project manager, and recommended that Sam apply for the job. Sam and Fred talked at length about Mitsusaki, and what it was like to work there. Sam told Fred that he was very interested in the job, because he was interested in getting out of Williamstown and working in other parts of the country or internationally.
At 2:30 p.m., Smith Construction’s superintendent (Carl Johnson) walked through Building A and found
Jefferson Venting working in Classroom 5-C. While Carl was checking the classroom, he noticed a piece of 3 ductwork lying on the floor of Classroom 5-C. Carl knew that the ductwork was not the required 16 gauge material. Carl questioned Mike Stevenson (Jefferson’s foreman) about the piece of ductwork Carl had discovered. Mike told Carl that Jefferson was installing 24 gauge ductwork. However, in response to Carl’s question, Mike indicated that he didn’t have a set of plans on the project site. Carl told Mike to stop work until he could verify whether Jefferson was installing the incorrect material. Carl and Mike walked to the job trailer, and reviewed the plans and specifications. Carl showed Mike the relevant contract specifications for the ductwork to be installed for the new heating and air conditioning system at Williamstown High School,

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