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Am I mandated to pay a General Contractor for not performing work for a state project?

CaliforniaPerformance Bond

I submitted a bid for a prevailing wage project however the scope of work ended up being more than anticipated. We notified the General Contractor that our company would be unable to perform. No contract had been signed. That same General Contractor has reached out asking for money for liquidated damages for the delay they claimed to have experienced while finding a new sub to complete the work. The letter also states that they want payroll records from us working on the project however that is false. We never worked on site because we did not sign a contract. Their claim is that our written proposal is written contract enforceable by law. How should we proceed?

1 reply

Jun 23, 2020

Hopefully your notice to the GC that you would not perform or that you were withdrawing your proposal was before it was accepted? Anyway, based on what you said, I don't think you have too much to worry about. You should not provide payroll records, as you have no obligation to do so not to mention they are not relevant to anything. If anything, you may request their authority for the notion that your unsigned contract is enforceable. If you want to discuss, feel free to call. Thanks, Carlton & Alberola and/or Andrew Carlton have not been retained by the recipient of the above comment and, moreover, the above comment does not create an attorney-client relationship. The above is general commentary based on limited and insufficient information. If you wish to obtain legal advice, please contact Andrew Carlton at 949-954-6666 x101, or by email at andrew@cnalawfirm.com.

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