TANG, Circuit Judge:
I. Factual Background
In order to comply with a New Mexico air quality control regulation, the Arizona Public Service Company ("APS") arranged for the construction of a particulate removal project ("PRP"). Specifically, on or about April 1, 1979, APS entered into a contract with general contractor United Engineers & Constructors, Inc. ("UE & C") in which UE & C agreed to construct the PRP.
UE & C then set...
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