Menu

What can we do?

California

It has been 6+ months since our GC put their project on hold due to lack of elevations. We have stayed in spoken communication with them throughout this time, and every time we're asked to keep waiting. They did make an initial payment of $400,000.00 when we signed our agreement. We also purchased some material and performed some work but came to a complete stop since. We know a change order can be submitted for the increase of material cost, but what if we want out of the project? Or what if they refuse the change order? Can we give them a notice asking them to let us know what their decision will be, if to continue with the project or continue waiting? And what if the ownership of the project changes? Do we have to honor the agreement ?

1 reply

Mar 3, 2021
Your subcontract language will be the roadmap to solving this dispute. In general, putting your contract on hold (for apparently valid technical reasons) would cease your obligation to perform work, including the ordering of materials. If you have price escalations during the suspension period, that generally would be compensible. It appears your downpayment was substantial and they may have expected you to immediately order the equipment and materials. It may be important whether you gave them formal notice that you were not proceeding with the order. Some parties are claiming Covid-19 delays and sometimes impossibility of performance which complicates matters. Again, your subcontract should give guidance for these circumstances. This is a complex issue and you certainly could benefit from skilled counsel in unraveling your facts, contracts, and law.
0 people found this helpful
Helpful