We are on a job where there are 4 prime contractors. the GC and MEP. The GC has caused the project to be delayed by 5 months. They started the project 2 months late and understaffed it. An extension of time was given and it will not be met. The owners are threatening to charge all the prime contractors liquidated damages. Can they do this when the delay was caused by the GC?
I'm going to assume that you are one of the primes. Whether the owner can withhold LDs depends on the language in your contract. It sounds like the owner is trying to get all parties to accelerate their work due to the GC's delays. Perhaps a letter to the owner/owner's rep denying responsibility for the delays and refusing the LD's is appropriate. If you have any questions or would like to discuss further, my contact info: lenwindish@verizon.net (215)979-7605.
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