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TENNESSEE CONSTRUCTION:

TENNESSEE CONSTRUCTION: If the Subcontractor completes the work in accordance with the scope of work. But the General Contractor failure, delay or stop the work schedule of the subcontractor. Is a Subcontractor's obligation to continue performance? Even knowing that the General Contractor will continue doing the same damage. Can the subcontractor walk of the job?

1 reply

Feb 4, 2019

Good question. First, what remedies might be available to a subcontractor in a situation such as the one described above will be heavily influenced by the terms of the contract. If the contract for work does not allow for a subcontractor to walk off the job due to the contractor's actions, then walking off the job could actually put the subcontractor in breach of contract, even when they seemingly haven't done anything wrong. At the same time, where a contractor impedes their subcontractor's ability to perform their work pursuant to the contract, that contractor could be in breach themselves - and that may potentiallyentitle a subcontractor to terminate their agreement. Ultimately, a subcontractor's ability to combat their contractor's delays and work stoppages will likely come down to whatever is included in the contract (and whether the contractor has breached the agreement through their actions or inactions). zlien discusses these ideas here (along with a number of other things to keep in mind when talking breach of contract): Construction Contracts: A Deep Dive on Breach of Contract.

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