sub-contractor not performing

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  • 8/9/2019 Sub-contractor Not Performing

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    Sub-Contract Not Performing

    The selective use of form letters by construction industry organizations may not only save substantial time and

    expense but also may become valuable evidence in the event of a dispute. Many businesses maintain a catalogue of 

    form letters to cover frequently recurring situations.

    Therefore, from time to time, the Briefs will suggest forms for consideration by readers with the caution, however, that

    users should study their particular circumstances and contractual arrangements involved to deter mine whether the

    form proposed fits the circumstances.

    In the notunusual situation where a subcontractor is failing to ma!e timely progress, the following form letter might

    wor!"

    #ear $ubcontractor.

     %s a framing subcontractor on the M.T. &ffice pro'ect, your company has consistently failed to furnish sufficient s!illed

    wor!men or the necessary equipment or materials to ma!e timely progress with your wor! on the pro'ect.

     %s you !now, a delay in completion of the pro'ect beyond the presentlyestablished &ctober (, ()*+, completion date

    may result in the imposition of liquidated damages of (,--- per day by the pro'ect owner . Based upon the

    construction schedule for the pro'ect, your companys wor! is now two wee!s behind schedule and appears to be

    falling further behind.

     %ccordingly, this letter is to place you on formal notice that unless within three wor!ing days following the date of this

    letter you have increased your crew size, provided the necessary scaffolding and arranged for timely material

    deliveries to demonstrate an ability to meet your scheduled completion date, we will determine what actions our 

    company must ta!e to assure timely completion of the framing wor! on the pro'ect.

    $uch action may involve the termination of your contract and the engagement of others to complete your companys

    wor!. In that event, your company would be responsible for any additional costs incurred for completion of your wor!

    as well as any and all damages we might sustain because of your companys failure to ma!e timely progress.

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    &n $eptember (*, ()*/, at (-"-- %.M., our pro'ect superintendent will meet with an official representative of your 

    company at the 'obsite for the purpose of determining whether your company has the intentions and ability to comply

    with the requirements of this letter. 0lease arrange to have your official present at that meeting.

    In addition, ta!e notice that we will hold your company responsible for any and all loss, damages or extra expense we

    may incur as a result of the delays in the completion of your wor! on the pro'ect.

    1ery truly yours,

    2aturally, if there are any relevant provisions of the contract agreement which would govern the circumstances or if 

    any other time (imitation or remedies apply, this particular form should be modified accordingly.

    3se of this type of letter under the circumstances would, of course, later prevent the subcontractor from denying that

    he had notice of his delay or that he was given an opportunity to correct his problems. $ome subcontract agreements

    actually require written notice of this type, frequently referred to in the trade as a 4threeday notice.4 &ne valuable

    theory" 45rite a letter and write the last letter.4

    #I$67%IM89" Materials on this web site are provided for informational purposes only, do not constitute legal advice, and are not

    guaranteed to be complete, correct, or uptodate. This web site is not intended to and does not create an attorneyclient

    relationship between any viewer and 5olf $lat!in : Madison, 0.6. $uch relationship may only be created by direct contact with and

    the engagement of one of the attorneys with the firm.