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Can we fight this

CaliforniaConstruction Contract

We have a contractor that we are the sub to and he is pulling $75,000 out of our scope after working under contract for 1.5 years. Contract states (a) Termination. Builder may terminate Contractor’s right to perform all or any portion of the Work (including all or any portion of any individual Purchase Order), or this entire Agreement (in which case Contractor’s right to perform all Work shall terminate), upon written notice at any time with or without cause (each, a “Termination”). Upon receipt of notice of Termination from Builder (“Termination Notice”), unless directed otherwise, Contractor shall immediately cease performance of the terminated portion of the Work, placement of orders for materials, equipment, machinery and supplies in connection therewith and shall, if requested, make every reasonable effort to procure cancellation of all existing orders for contracts upon terms satisfactory to Builder. Contractor will do only such Work as may be necessary to preserve and protect that portion of the Work which has been incorporated into the Site and to protect materials, supplies and equipment at or about such Site or in transit thereto, unless otherwise instructed by Builder. Contractor solicited bid two months ago for work he is removing from our scope today.

1 reply

Jun 3, 2020
It appears based on the limited contract language that you quoted that the contractor has the right to remove work from your scope. You may be entitled to some compensation for the scope removed depending upon the other terms of your contract. In addition, explore whether you might have a claim for damages if you took any action in reliance upon the promise that you would be able to perform the work or any other false representations by the contractor.
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