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I received a Purchase Order (PO) instead of a Subcontract Agreement (SA) . Do I lose any legal rights as a subcontractor

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We are a glazing subcontractor. I provided a proposal for the procurement and installation of storefronts and glass railings to a General Contractor (GC). Instead of receiving a SA from the GC, I received a PO with a long list of qualifications. What concerns should I have with this type of engagement from the GC to us the subcontractor? Do I lose any lien rights or any legal rights? Please confirm.

4 replies

Oct 15, 2020

Good afternoon,

The form isn't necessarily an issue itself --- it is the content and substance of the purchase order and, as you say, the "long list of qualifications." What are the terms and conditions of the arrangement? That is what is important.  

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Oct 16, 2020
Chistopher, THANK YOU! Do I lose any lien rights or do I lose any rights as a subcontractor? Please advise. THANK YOU!
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Oct 16, 2020

You would be surprised at how little it requires to have a valid written contract. As long as the necessary terms: scope of work, price, time, and/or other factors that spells out what the terms are in place, whatever documents that are provided to you MAY be enough to form a binding contract.  

And if you contract direct to owner, or have provided a pre-lien notice to owner, then you may have the basis for a mech lien.

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Oct 20, 2020
David, THANK YOU for your response. We appreciate your expertise! THANK YOU!
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