We are on a commercial job. The GC sends us a Construction Change Directive. We provide a quote for the additional work but they will not approve the price, they demand the work to be done and only after that will they discuss price. There is a contract clause that seems to give them the right to demand we continue working. This has happened a number of times in the past and we never are able to get more than a fraction of our fair price.
Applying lessons from Coach Vince Lombardi, focus on the fundamentals. A contract is a relationship management tool. Focus on the relationship and what is needed for a mutually sustainable relationship. Focus on the contract language. Does it clearly express and frame the expectations of the parties? I provide negotiation and contract solutions throughout WI, AZ, CO, and FL. Your situation arises often. There are many legal levers that might help prevent this situation as well as address a dispute after the approved work is done but the value of work is not agreed on or not paid as expected or promised. Common Qs for a company in your situation include: What is your BATNA? What does profit mapping show? What are the economics of a mutually sustainable relationship? Most contracts like this also (should) have an ancillary provision on how the work will be paid or valued and if not as contracted the contract (should) have a dispute resolution clause to address how to resolve this type of situation - especially for disputes less than $25k. If no clause exists, direct negotiation and other ADR mechanisms are common solutions. The last resort is a lawsuit. It seems like a difficult conversation is on the horizon with an opportunity to revisit and reframe the relationship.