Sub-contractor questions

[Trudy1980!]

Hi,

I hope someone is able to help as we are a small company and really don't know what to do.

We have recently (in the past 7 months) started working as a sub-contractor for a much larger company.

We originally came into contact with this larger company with the intention of carrying out a 7 month project with them which was due to start June 2023, as the project is so large it would require our whole work force to be on site for the duration. We were promised the job would start so we ceased finding our own projects. The job how ever was pushed back time and time again so luckily the main contractor provided us with smaller fill in jobs.

We have now seen what this main contractor is like to work for they bring the moral of the team down and payments are awful they are finding any excuse not to pay our invoices and the relationship is not a good one.

The large project is due to start on Monday and we would love to pull out but do not know where we stand. We have a contract that we signed at the beginning of July and in the contract it mentions a completion date of the 28th Dec, obviously due to the 6 month delay in the start date this end date will not stand.

Is there any way we can pull out of this job due to the delay in the start date and the contract no longer being accurate?

Any help would be greatly appreciated.

Thank you .

[R0b]

Unless there is an explicit right to terminate the contract either due to the company's breach of obligations or if there is such a long delay on the project due to events outside either side's control or some other provision that triggers the right of termination, the answer will likely be no.

Always the starting point is read your contract you signed. It's very dangerous to sign a contract you have neither read nor understand nd I'm sure the company took advantage of that but perhaps a lesson learnt for next time and make sure you negotiate first, rather than just signing on the dotted line.

[atticus]

You have a contract signed in July. Read it!

[Pezza54]

Yes you should definitely read the contract, particularly in respect of any start date, contract delays, extensions of time.
It is unusual to have a completion date. Is the client a department store that wanted to be open for the January sales?
For the main contract It is more common to have a flexible start date, say within 3 months of signing the contract and a contract period to complete the work after the start on site.
When you signed the contract early July, did you anticipate an imminent start date? If you did you probably priced your subcontract quotation on this basis. Did you qualify your quote that the price would only stand for 3 months? This is what most subcontractors do.
You should contact the main contractor to let him know you will be seeking increased costs caused by the delay.
This might not make for a good working relationship, but by the sound of it the relationship isn't going to be good anyway.

[efpom]

Relevant? https://www.fenwickelliott.com/resea...ers/insight/70

[Pezza54]

The article that Efpom has referred to would be v. useful reading if the main contractor and subcontractors experience delays after work has started and suffer loss and expense.