Parem Contracting Corp. v. Welch Construction Co.

The defendant, Welch Construction Co., Inc. (Welch), appeals from an order of the Superior Court (Dunn, J.) awarding damages in quantum meruit to the plaintiff, Parem Contracting Corporation (Parem), and rejecting Welch’s counterclaim for damages resulting from the plaintiff’s breach of contract. We reverse and remand.

In 1981 Welch contracted with the Salem Housing Authority to build a federally subsidized housing project in Salem. Welch and Parem executed a subcontract dated January 7, 1982, in which Parem agreed to perform site preparation work for the project at a price of $220,000,…