Developer Attempts of Shift Cost Overruns to Subs
A utilities contractor facing financial pressure from an international developer on a large commercial project was assisted in revising its reporting and change order procedures, effectively countering claims of default and enabling project completion.
The Situation
Our client, a large utilities contractor subcontracted with an international developer to install utilities as part of the $300,000,000 commercial development.
The developer having under bid the prime contract when entering into its fixed price contract with the owner, thereafter attempted to force the subcontractors, including our client, to fund the contract short falls. Our client called us.
Working out of our client's office at the project site, we were able to assist our client in revising its project reporting and change order procedures to better reflect the progress of our clients work and to document project delays and cost over-runs unrelated to our client's work.
The Result
Using this information, we were able to counter the prime contractor's claim that our client was in default, allowing our client to finish the project.