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How much needs to go wrong on a project to justify a discount/contract breach?

MinnesotaConstruction Contract

We hired a construction company to re-side our home, add gutters, and replace soffit/fascia. The entire process has been a nightmare - job taking 6x as long as quoted (Originally scoped to be done the last week of October, they are currently still working after re-quoting the project to start October 31 and last 1-1.5 weeks), really bad communication, defective work, leaving our yard a mess, and constant errors (hello back door not being able to be opened and none of my windows being operational after they installed the aluminum wrap). They have slowly been making fixes to things we have pointed out as problems, but it's still been a big headache. We have consistently brought up issues with the project management and work itself. Their contract language is loose about timelines etc. Items they list verbatim in contract that they have failed to uphold: Site cleanup, labeling & storage of all exterior fixtures, proper aluminum wraps on windows/doors, communication in a timely manner, address all concerns in 24 hours, install all products according to manufacturer published instructions. Is this enough to request a discount? I think yes, my husband isn't sure. We are hoping to be able to work things out through talking it through but want to make sure we are walking into things clearly.

1 reply

Dec 13, 2019
Every situation is different, and the availability of discounts or the potential for breach claims will depend on the specific circumstances as well as the terms of the contract, itself. Plus, ultimately, any discount in the contract price will likely need to be agreed upon between the parties. With that being said, if an owner can point to specific contract terms that have not been fulfilled, it should likely be easier to convince a contractor to take a discount on the contract. Plus, if the contractor has failed to perform work in a way consistent with the contract, and if that failure has materially affected the project and the purpose of the contract, then it's possible the owner may be entitled to pursue a breach of contract claim against their contractor. And, as you may know, potential claims may also be leveraged into discounts on the contract. For additional clarity, it'd be wise to pore over your contract or to seek out a local construction attorney to do the same. Plus, they'll be able to advise you on how best to move forward under your specific circumstances. For further discussion on breach of contract and what may be considered material: Construction Contracts | A Deep Dive on Breach of Contract.
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