That doesn’t pass the “equity” smell test to me. I guess it depends on the language of the contract. Seems onerous. Say the original contractor signed on, had a key person die on their team, and they only mobilized and had to shut down. I really doubt they would be on the hook to cover another contractor coming in at a higher price to do the job. In my experience the courts are pretty wise and fair in these situations.
In any event, have spent many decades administering RUS financed construction projects. They all have a performance bond so the owner and lender are both covered. Smaller contracts have liquidated damages. Best Regards, Chuck McCown McCown Technology Corporation 8401 N Commerce Dr Lake Point, Utah 84074 801-250-9503 Office 435-830-4306 Cell www.mccowntech.com www.microtrench.pro www.terabitnetworks.com From: Mike Hammett Sent: Thursday, October 31, 2024 6:43 AM To: AnimalFarm Microwave Users Group Subject: Re: [AFMUG] nonstart/noncompletion clause Per our attorney, anything it costs above and beyond what the original contractor signed for is owed by the original contractor. If the original project was $100k and you had to pay someone else $300k to get it done, the original contractor owes you at least $200k, and anything else on top of that that you hadn't yet paid them. ----- Mike Hammett Intelligent Computing Solutions Midwest Internet Exchange The Brothers WISP -------------------------------------------------------------------------------- From: "Steve Jones" <[email protected]> To: "AnimalFarm Microwave Users Group" <[email protected]> Sent: Wednesday, October 30, 2024 5:12:59 PM Subject: [AFMUG] nonstart/noncompletion clause so I just had my first, probably not my last case of a subcontractor not starting a project and backing out. It does screw me with my reputation with the customer, but its what it is, I am lining up a new sub. My contract template has a non start/non complete clause of standard verbiage, the whole thing of basically the sub pays whatever it costs beyond any completed work. Im not going to enforce it in this case, but are these clauses actually enforceable? Like could I go hire somebody else at 3x the cost and bill the old sub? In this case Id doubt even with judement id see any dough, Im just curious if anybody has ever had to enforce this? -- AF mailing list [email protected] http://af.afmug.com/mailman/listinfo/af_af.afmug.com -------------------------------------------------------------------------------- -- AF mailing list [email protected] http://af.afmug.com/mailman/listinfo/af_af.afmug.com
-- AF mailing list [email protected] http://af.afmug.com/mailman/listinfo/af_af.afmug.com
