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Can a subcontractor sue a contractor for nonpayment?
Yes under contract law a subcontractor can sue for breach of contract. However subcontractors should become familiar with the state's construction or mechanics lien laws which grants them the right to lien the property to secure payment. Many states have preliminary or warning notices that must be served on the property owner(s), lender(s) and primary contractor within a specified period in order to secure lien rights. Do NOT lien a property without valid lien rights since you risk a multitude of retaliatory lawsuits.
What is a Collateral Contract?
A collateral contract is a contract which assigns the rights and/or obligations of an existing contract to a third party. Due to the doctrine of "privacy of contract" only those parties mentioned in a contract have rights and obligations and it is illegal to assign these rights and obligations to third parties without the consent of the other parties to the main contract. Collateral contracts overcome the privacy of contract doctrine. Collateral contracts are used in the construction industry to make a direct contractual relationship between clients and sub-contractors. In the collateral contract the client will promise to pay the sub-contractor for the works that the main contractor promised the client to undertake. This collateral contract comes in handy when the main contractor goes insolvent or has late payments or, more importantly, when the subcontractor's performance is substandard.
Can a contractor hire a sub-contractor without the permission of the owner hiring the contractor?
That will depend on the contract. Some contracts allow it, others require notification and approval of sub-contractors.
What are examples of indirect contract?
Indirect contracts are agreements where one party's obligations are influenced by another party's performance, but without a direct contractual relationship. Examples include subcontracting, where a primary contractor hires a subcontractor to fulfill part of a project; agency agreements, where an agent acts on behalf of a principal; and supply chain agreements, where a manufacturer relies on suppliers for materials without a direct contract with each supplier. In these cases, the indirect relationship can affect obligations and liabilities.
Can the COR modify a contract?
When a contractor performs work beyond that required by the contract without a formal change order and it is perceived that such work was ordered by the Government or caused by Government fault, this is defined as what
Drennan rule mean in construction law?
The Drennan rule refers to a particular way of looking at arrangements and bids between a general contractor and a sub-contractor. In the landmark legal case of Drennan v. Star Paving, Judge Traynor ruled that when a sub submits a bid that is then used by the general, the sub-contractor ought to be held to that bid regardless of whether or nor their bid was accurate. This, in theory, forces sub-contractors to be more careful in making sure that their bids are accurate. This is the view favored by most courts (but not all) and is known as the Drennan Rule.The reverse of this way of thinking is attributed to Judge Learned Hand (yeah, his name is Learned Hand). Judge Hand ruled in a separate case that the subcontractors are not bound to the general contractor until there is a traditional contract formed by offer and acceptance.
Is an insurer liable if a contractor he has given a performance bond dies without performing?
The insurer is liable in all cases where the contract to preform the work is enforceable. If the contract (not the bond) has an escape clause for death, then no.
When a contractor performs work beyond that required by the contract without a formal change order and it is perceived that such work was ordered by the Government or caused by Government fault this?
Unauthorized commitment
What do you need to sue a contractor that put a lien on my home without finishing the job in illinois?
Did you pay the contractor? If not, he had the right to lien your property. If you want to sue the contractor, you need to be able to prove that he did not finish the job. For example, if he put an addition on your house and did not roof it, you need to show in the contract where it states the work included roofing the addition.
Is a property owner liable for a mechanic's lien filed by a landscaping company when the contract was entered into by the renter without the owner's knowledge?
No. The contractor must sue the tenant for the money due.
Does a sub-contractor need a license?
Yes, a subcontractor typically needs a license to operate legally, depending on the type of work they perform and the regulations in their specific state or locality. Licensing requirements vary by jurisdiction and can include general contractor licenses or specific trade licenses. It's essential for subcontractors to check local laws to ensure compliance, as working without a license can lead to fines and legal issues.
What is The COR is authorized to do?
The Contracting Officer's Representative (COR) is authorized to oversee the performance of a contractor, ensuring compliance with contract terms and conditions. They serve as a liaison between the contracting officer and the contractor, monitoring progress and addressing any issues that arise during the contract's execution. Additionally, the COR can provide technical direction and receive reports, but they do not have the authority to make changes that would alter the contract's scope or terms without the contracting officer's approval.
