On this episode of Send It, JC navigates the tangled web of relationships that exist outside the direct contract.

We are tackling Chapter 4 of Construction Contracts to understand "Privity of Contract"—the rule that usually protects you from being sued by someone you didn't hire, and prevents you from suing someone who didn't hire you. But as with everything in law, there are major exceptions that every Project Engineer needs to know.

In this Deep Dive, we cover:

• Privity of Contract: The fundamental rule that contractual rights generally only exist between the parties who signed the deal (e.g., Owner and Prime).
• Third-Party Beneficiaries: The exception where someone outside the contract (like an Owner suing a Sub) might actually have a case if they were the "intended" beneficiary.
• The "Multiple Prime" Problem: The chaos that ensues when an Owner hires several Prime contractors who have no contract with each other—and who pays when one delays the other.
• Promissory Estoppel: The "fairness" doctrine that stops a Sub from pulling their bid after the Prime has already relied on it to win the job.
• Sovereign Immunity: The reality that you generally can't sue the government unless they grant you permission to do so.

Understanding these relationships is key to knowing who you can lean on, who can lean on you, and when you need to call the lawyers.

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