Until recently our company has never been subject to a situation whereby the client/owner refuses to charge Liquidated Damages but the General Contractor attempted to charge us at 5X of the liquidated damages. Yes it is in the contract so make sure you modify yours to protect you. It was the general who delayed the start of the schedule. This cascaded through the rest of the subcontractors and thus we caught the wrath of a GC responsible for it’s own errors.
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I’m very sad to see it written down and even more sad when the Them (the General Contractor’s) have a far bigger warchest for legal battles that a typical subcontractor could dream of. Subcontractors typically aren’t built for the large trudge through the legal system. It’s expensive, time-consuming and there is no guarantee of success. […]
In some contracts our company has had come across a phrase of “if there is a discrepancy bid the higher option of the two”. Congratulations you are now a proofreader for the architect. Better yet the GC gets to invariably charge back moneys to the subcontractors. Sometimes they will even charge both sides of the […]
So now we have seen the Weber School District, West Jordan City, Hogan Construction and Groathouse play games with retention. The money isn’t to be used as a bargaining chip but yet that is the game being played.