Rosellini v. Banchero

Plaintiff, a contractor, and defendant, a property owner, entered into an oral contract in June 1969, for the construction of a building for defendant. The work was to be done on a time and materials basis, but with a maximum cost of $56,146, plus sales tax, plus extras as ordered by defendant. A unique feature was that any reduction in cost below that estimated in plaintiff’s bid, such as lower subcontract costs, would accrue to defendant’s benefit. In short, all savings benefited defendant, while plaintiff ran the risk of costs exceeding the ceiling.

Construction began and plaintiff…