Tips for Contractors: When to Walk Away from a Project Part 1
In the construction industry, the momentary sense of pride that accompanies a successful contract signing is oftentimes overwhelmed by a wave of uncertainty shortly after. You might second guess yourself, asking questions such as:
- Is this project bound for success?
- Am I protected by the contract I just signed?
- Will I be able to satisfy the terms and conditions of my contract?
- Is the owner going to provide the proper compensation?
- Do my workers have the skills to complete this project safely and on time?
However, there’s one even BIGGER question that hangs over every project, especially those that fail to proceed along their projected course:
- If things go awry, how can I be certain that walking away from the project won’t cause me to violate my contract?
In this four-part series, a Jacksonville construction lawyer from Cotney Construction Law will discuss several scenarios in which a contractor may be able to walk away from a project without penalty. There’s a fine balancing act to keeping your promises and protecting your business, but you shouldn’t be responsible for fronting the cost of any requests that fall outside the scope of work stipulated in your contract.
Stopping Work: a “Radical” Response to Contract Disputes
When an issue arises that causes you to re-evaluate your contract, it’s important to weigh your options and make an informed decision about what to do next. One option is to halt work while the issue is resolved, but this might not be the best course of action for your business, and it’s best to consult a Jacksonville construction lawyer before making any rash decisions. Outright stopping work is considered to be “one of the most radical things you can do” in the construction industry, so it’s important to see where you stand before pulling the plug.
Before You Walk Away, Consult a Jacksonville Construction Lawyer
In parts two, three, and four of this four-part series, we will dive into some of the scenarios that may permit a contractor to walk away from a job, but before we do that, it’s imperative that you, as a contractor, understand that if you jump to any conclusions about your current situation, it could result in financial hardship for your business. Breach of contract disputes can be costly, and your reputation may suffer alongside your bottom line if the dispute becomes publicized. Therefore, it’s highly recommended that before you walk away from a project, you consult our Jacksonville construction lawyers for information on how to properly handle your grievance.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.