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AIA A133-2009 Agreement between Owner & Construction Manager

TexasConstruction Contract
Anonymous Subcontractor

Plan B Dsgn signed a subcontract Agreement with a General Contractor back in June of 2020. Here are some of the issues that aspired: 1. Since June, the project went thru some misc. Infra-structure issues that caused delays in the progress due to redesign. 2. Also, rain delays due to winter weather. 3. Then mid-year 2020 we were told that the owner is changing the way the current building stud framing and parapet framing design and that revised drawings were forthcoming. 4. Then we heard that we will also be receiving tenant finish-out drawings. 5. Then towards the end of 2020 we were told that the Owner has not released the project to go vertical. 6. Now 1st week into 2021 we noticed that the project is going vertical and one of the buildings steel erection is almost 30 to 40% erected. Called the General Contractor today 1/6/21 and found out the Owner has decided to contract with his own subcontractors. GC explained that the Owner had elected to do this on most if not all of the pending scopes of work. He proceeded to say that the Owner per AIA Agreement A133-2009 (which is signed between the GC and the Owner) had the right to reject and elect to hire his own contractors to do the work if said had nor commenced. Please advise if true and/or what is our next action would be. Thank you so much

8 replies

Jan 7, 2021

Hello,

You have provided us a lot of well laid out facts but you have not told us what your specific issue is. Are you having a payment problem?

Yes, he can hire his own people at his discretion but you should be paid for any work you have done already.

E. Aaron Cartwright III
214.789.1354
Aaron@EACLawyer.com

I am an attorney but I am not your attorney... yet. The information provided here does not create an attorney/client relationship.
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Anonymous Subcontractor
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Jan 7, 2021

Thak you so much. We do not have a payment problem. We have an executed subcontract agreement with the General Contractor/Construction Manager for the Drywall Scope of work. We have not started the work as of yet. And now we were informed by the GC that the Owner elected to go with someone else.

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Jan 7, 2021

Gotcha,

Unfortunately, that one is a done deal and (in my opinion) not worth your time pursuing.

Because you haven't done work, you have no lien rights.
You could sue for breach of contract but the facts do not show you have not suffered a financial harm so the case would be thrown out relatively quickly. If you did spend money towards this project, you would have a claim under a different cause of action but then you have to ask yourself if it's worth your time. Because your time is worth something but do you want to spend it chasing that one.

-Aaron

I am an attorney but I am not your attorney... yet. The information provided here does not create an attorney/client relationship.
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Anonymous Subcontractor
Question Author
Jan 7, 2021

you are right it is not worth our time. Thank you so much for your help! However, I did email the GC to proivide us with the documentation from the Owner of the requested termination and documentation from his company voiding our agreement.

Am I within my right toask for such a termination in writing?

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Jan 7, 2021

Termination in writing is best. It means that they can't claim you were supposed to be on the job when you were not there.

-Aaron

I am an attorney but I am not your attorney... yet. The information provided here does not create an attorney/client relationship.
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Anonymous Subcontractor
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Jan 7, 2021

Thank you so much for the help!!

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Jan 7, 2021
It seems, based on the limited information in your email, that the GC gave you incorrect information. Attached is the AIA form. Article 10 addresses termination. The Owner can terminate before the work begins, but there are notices required and expenses to be paid. I am happy to discuss this further with you to see if there is anything that can be done. If there is a remedy for you, I would need to be hired. I charge on an hourly basis – I do not take contingency cases. I hope this helps you.
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Managing member at Santire Law
| 11 reviews
Jan 8, 2021
I am not clear about a couple of things here.  First, the A133 is between an owner and a construction manager rather than a general contractor.  Other AIA contracts deal with the relationship between owner and a general contractor. Although a construction manager can assume financial responsibility for the project.  Unlike a general contractor, they don’t typically directly contract with the subs.  Typically their prime responsibility is to supervise the general and even the subs.  Apparently there is also a general contractor in addition to the construction manager.  Therefore it is the general that usually hires the subs.   If the owner elects to directly hire subs, that might be the terms between the owner and the general.  Interesting point is that when the owner hires the subs, those subs are actually general contractors rather than subs.  This is important for such issues as rights to liens.   For example, in Texas, while a subcontractor has M&M lien rights, a general contractor has rights to a constitutional lien.   Another factor here is that you appear to be watching all these changes.  Unless you have a contract or have actually done some work on the project, I am not clear as to what claim you can make.  
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