Contracts and Claims
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Impact of Approval of Shop Drawings on Contractual Obligations
By Philip W. Goodin and Joshua C. Dickinson

The use of shop drawings in the construction industry is commonplace where both the architect and the general contractor approve the shop drawings as submitted by the subcontractor. In fact, the legal effect of an architect or contractor’s “acceptance” of a particular set of shop drawings has been litigated in several jurisdictions with varying results.

Conflicts often arise where there is a difference between the shop drawings and the other plans and specifications. Courts resolve this conflict in several different ways. Some courts hold that where a contractor approves of a subcontractor’s shop drawings, the contractor cannot later claim the subcontractor’s performance was defective if the work was performed consistent with the shop drawings. Cast-Crete Corp. v. West Baro Corp., 339 So.2d 413 (La.Ct.App. 1976) (the “attempted set-off or back charge was unjustified because, as discussed above, [the subcontractor] provided the correct items in accordance with the approved drawings”). Other courts have not given such weight to the approval of shop drawings.
Missouri’s general contract law, for instance, holds that, where a party to a contract specifically agreed to permit its contracting partner to engage in activity which may have otherwise been a breach of contract, the permitting party is estopped from claiming a breach of contract. McCullough v. Newton, 348 S.W.2d 138, 143 (Mo. 1961) (noting “‘there is no rule more necessary to enforce good faith than that which compels a person to abstain from enforcing claims which he has induced others to suppose he would not rely on.’”) (quoting In re Jamison’s Estate, 202 S.W.2d 879, 886 (1947)).

The issues presented when a contracting party itself approves of shop drawings are distinct from instances where the architect, who is not a party to the contract, approves of shop drawings. Some courts have held that an architect’s approval of shop drawings does not relieve a subcontractor of liability for deviations in the shop drawings where the contractor did not approve the shop drawings. See, e.g, Fauss Construction, Inc. v. City of Hooper, 249 N.W.2d 478 (Neb. 1977). Other courts hold the opposite. Alabama Society for Crippled Children and Adults, Inc. v. Still Construction Co., Inc. 309 So.2d 102 (Ala. Ct.App. 1975). As with most aspects of mid-project activities, it is important to consult with legal counsel so that you are aware of the significance of shop drawing approvals in the applicable jurisdiction.