Ayala Boring, Inc. v. HPS Mechanical, Inc. CA4/1
HPS Mechanical, Inc. (HPS) entered into a contract with the City of San Diego (City) to serve as the prime contractor for City's South Mission Valley trunk sewer project (Project). HPS entered into a $394,700 subcontract (Subcontract) with Ayala Boring, Inc. (Ayala), an underground pipeline boring contractor, for Ayala to install casings and sewer lines under Interstate 8 (I-8) at two locations that were part of the Project. One location was near the interchange of I-8 and Interstate 15 (I-15), at which Ayala was to bore a 260-foot tunnel under I-8, install a 36-inch diameter casing, and then install a 24-inch customer furnished sewer pipe through that casing.
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