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Can the GC sue my company the subcontractor if I hadn’t started the work?

Pennsylvania

Project was delayed months pass the original schedule (early fall) at the time of signing the contract on the GC’s part. As most recently the GC reached out saying my portion of work should be starting in a few weeks . I mentioned that the conditions around the project was different due to weather (mid winter)and job related costs due to delays of the project/GC. In addition we were going through the project and I was given revised/finalized plans (drawings) for the first time in our communications. After going through everything I provided updated pricing and told the GC that we can’t proceed at the original price because there was many new issues and the most important of them all were the drawings. I told him that the original contract was null and void because the exhibits (schedule, drawings, scope, inclement weather) were different than what we originally were given so in essence this is a new contract/scope. The GC has since threatened to hold us liable for damages if we don’t start the work at the original price and if they have to find another sub. The project was still be delayed by GC and being revised weeks later.

1 reply

Mar 7, 2023
The answer is maybe. A more definite answer requires examination of the contract terms and conditions. Other factors are what state (I assume Pa); did GC require a performance bond of the subcontractor; and if it is a public or private project. But don’t ignore the risk. There is a potential that the GC could hold the subcontractor liable for any cost above the subcontractor’s original price. The subcontractor can’t control that cost if it decides to not perform.
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