Sacked For a Better Deal: Termination for Convenience
Being let go is never convenient but it can happen, especially on certain construction projects. This is because the applicable subcontractor agreement may contain language which allows a contractor to fire a subcontractor at any time for no specific reason. Called termination for convenience provisions, these are sometimes triggered when the contractor finds another subcontractor willing to do the same work for a better price. Recently, a subcontractor complained when this happened, arguing it was bad faith on the part of the contractor. Not so said the judge, not given the language in the subcontractor agreement. There was no specific intent to harm the subcontractor here, just a desire to save some money. As a way to make up possible losses, a subcontractor would do well to carefully read his subcontractor agreement and include the recovery of demobilization costs in the event of a no cause termination.
Knowledge is king in every undertaking and it is no different when it comes to Florida Lien Law. Keeping up to date with legislative changes, critical court decisions, and current construction lien law is something construction executives and design professionals must do regularly to remain effective managers as they work hard to turn concepts into drawings and blueprints into well-built projects. Where it now has become common to believe that any discovered deficiency must be the result of someone else’s acts or omissions, the idea of avoiding potential risks is today more important than ever.
Published by the construction lawyers at The Barthet Firm in Miami, TheLienZone.com is a collection of Florida Lien Law alerts and articles, many reprinted from their initial publication in industry journals. It provides information helpful to contractors, subcontractors, material suppliers, architects, engineers and anyone else dealing with a mechanics lien issue, construction contracts, or construction bonds, especially in South Florida.
Managing job site discrepancies and those unavoidable change orders while correctly interpreting construction contract terms can provide an edge – something much appreciated in this always competitive business. This is but one step in that process.