Allowance Provisions in Cost-Plus Contract Confuse Arbitrator

California Court of Appeal, Fourth District

Ace Design and Construction, Inc. v. MAA Palm Desert Hospitality, Inc.

Case no.:  D085989

Date filed: March 30, 2026

Overview

A California appeals court has ruled that an arbitrator’s apparent misunderstanding of allowance provisions in a cost-plus construction contract did not provide adequate grounds for vacating the arbitration award.

Background

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