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Can i get more money out of contract?

I'm a lower tier Subcontractor under another subcontract and i feel like i got a contract with not enough money in it. I just started the job and I'm 90,000.00 into the project. All i have in my contract is Labor and i dont get enough money to cover my labor. I'm scared workers are going to start leaving the job and i get sued due to me not being able to pay. I reached out to Subcontractor and they dont want to help. I feel like i got taken advantage of due to my size company. This project broke me and dont know what to do. What can i do?

1 reply

May 6, 2020

The contract price is generally binding, and that's really the point of the contract. Accurately job costing is crucial when bidding on new work. But, it might be worthwhile to review the terms of your agreement to see if there's any opportunity to charge more for the work, to execute change orders, or to edit the agreement. Asking for a partial reduction in your scope of work or even for deductive change orders could be an option. Additionally, letting the customer know that you can't proceed with the contract under the current price might help. If you can't afford to keep going and have to walk away from the job, that'd probably create some serious issues for your customer and the project schedule as a whole. Project delays and cost overruns are common when a sub-subcontractor must be replaced. So, it's possible that there could be room to renegotiate the project. Ultimately, though - it might be a lose-lose situation. On one hand, walking away from the job could result in legal exposure and liability. But, continuing to work might also result in some losses. So, you may have to choose between the lesser of the two evils and weigh which risk is more tolerable. And, consulting with an Idaho construction attorney might help with that decision.

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