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Job given to someone else after a signed contract and a prelim sent out.

CaliforniaConstruction Contract

Im a subcontractor I gave a proposal to a general contractor, they liked our proposal, signed a contract and I sent out a preliminary notice. I've invested time and money into the project, we started working on the project in November 2021(shoring and bracing), the owners made major changes after they had already signed the contract and now they didn't accept the change order price and they decided to give the job to someone else. What happens when they have canceled the signed contract, are we to be compensated, we have not had a contract canceled before, we want to know where we stand.

1 reply

Apr 18, 2022
you are entitled to get paid on the pre-change order work that you performed on the original contract. once the major changes are made by owner, then it becomes a new contract, subject to owner choosing your change order pricing. Regardless, your previously performed work has value and it becomes a question of what is a reasonable value for the work that you did perform to be negotiated between you and the general & owner.
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