If you have a signed contract from a GC, im the subcontractor, can they terminate your job with no reason, 2 weeks after deposit recieved?
1 reply
Mar 13, 2020
Everything comes down to the terms of the contract. If the contract contained termination provisions, and if those provisions were followed, then yes - generally, a GC can terminate their subcontractors in accordance with the contract.
However, if the contract didn't contain termination provisions, if the GC failed to follow those termination provisions, or if the GC failed to follow contractually required termination provisions, then it's entirely possible that a wrongful termination has occurred and that a breach of contract claim would be warranted. Additionally, if the termination was truly for no reason, then the contract would likely need to contain a termination for convenience clause in order for the GC to totally avoid liability. Though, keep in mind that any liability or potential damages will be tightly tied to the damages you've actually incurred as a result of the contract, and lost profits are hard to prove.
If the matter is serious and causing a lot of turmoil with your business, it might be worthwhile to reach out to a local New York construction attorney so they can review your situation and contract. Upon further inspection, they may be able to provide you with some clarity about how to proceed.