ConstructionPro Week, Volume: 3 - Issue: 2 - 01/10/2014

Do Contractors Speak from Both Sides of Their Mouths?

By Bruce Jervis

 

A prime contractor’s relationship with the project owner obviously differs from the contractor’s relationship with a subcontractor. This is true both financially and contractually. Consequently, it may be advantageous to represent things one way to the owner and another way to the sub. Yes, contractors occasionally speak out of both sides of their mouths.

 

A recent example arose on a VA project in New York. Road work was delayed when the project owner refused to allow a subcontractor’s heavy crushing equipment into a cemetery. The prime contractor took the position with the VA that this was an excusable delay and requested a 48-day extension of the prime contract performance period. At the same time, the contractor told its subcontractor the delay was not excusable. The contractor defaulted the sub for failure to maintain the subcontract schedule.

 

A federal court rectified this situation. The court ruled that the contractor had violated the implied covenant of good faith and fair dealing. The contractor, not the subcontractor, had breached the subcontract.

 

Have you seen this from either a project owner or subcontractor perspective? Have you ever discovered that a contractor’s representation of a situation differed from the contractor’s representation to a third party? From a contractor’s standpoint, are you always consistent in handling matters such as changed work or scheduling? I welcome your comments.

 

COMMENTS

There are times when "talking from both sides of your mouth" are necessary but i believe there are fair, ethical ways, and subjects where this applies. For example we have learned that if the contract with the owner calls for a completion date of June 1, we create a project schedule for our subcontractors that represents a completion date of May 10 and we dont let the actual date out to anyone. This is only good practice that benefits us , the owner, and the subcontractor. In the example in the article above the Contractor was just plain unethical and THAT in unacceptable.
Posted by: Carl Shields - Friday, January 10, 2014 11:32 AM


I have worked for Key general contractors in the construction of Key projects in Silicon Valley and other projects in Northern California . We always regarded subcontractors as key members of our contractor packages that enables us to obtain contracts either competitively or in our design and build projects. We were successful in having subcontractors return to either negotiat Projects with us or bid competively.

As a general contractor/consultant, my feeling is that subcontractors play a key role and that the contractor has an obligation to take care of the relationship. In the case cited, the general contractor should have advised subcontractor of their negotiations with owner.

Presently many general contractors are just brokering subcontractors who gt jobs based upon lowest price, and if this was the circumstances in the case cited, I can understand that they would not have had a long term relationship with the subcontractor.

Contractors have to recognize that how they treat subcontractors affects reputation of course and ultimately the subcontractor prices they get. In the construction industry reputation is everything and to hear of the action this contractor followed is very dissapointing as this type of action is what gives other general contractor a bad reputation with the public.
Posted by: Jerry( Jerrold) Sullivan - Friday, January 10, 2014 2:28 PM


Hi there, I discovered your site by the use of Google while searching for

a comparable topic,your site got here up, it seems to be great.

I have bookmarked it in my google bookmarks.

Hi there, simply was aware of your weblog via Google, and located that

it is truly informative. I'm going to watch out for brussels.

I'll appreciate in the event you continue this

in future. Many other folks will be benefited out of

your writing. Cheers!
Posted by: Herr - Friday, January 24, 2014 7:52 PM


I really like what you guys are usually up too. This kind of clever work and reporting!

Keep up the very good works guys I've added you guys to

blogroll.
Posted by: Blankinship - Sunday, January 26, 2014 3:11 AM


There is certainly a lot to know about this issue.

I love all of the points you have made.
Posted by: Stepp - Sunday, January 26, 2014 9:14 PM


I couldn't resist commenting. Well written!
Posted by: Sasser - Monday, January 27, 2014 12:22 PM


I have been browsing online more than 2 hours today, yet

I never found any interesting article like yours. It is

pretty worth enough for me. In my view, if all websire owners and bloggers made good content as you

did, the net wll be much more useful than ever before.
Posted by: Dostie - Wednesday, January 29, 2014 8:22 AM


Way cool! Some extremely valid points! I appreciate you

penning this article and the rest of the website is also very good.
Posted by: Bradway - Saturday, February 8, 2014 10:54 PM


Everyone loves what you guys are up too.

This type of clever work and coverage! Keep up the excellent works guys I've

included you guys to my own blogroll.
Posted by: Stanfield - Sunday, February 9, 2014 3:21 AM


You made some good points there. I checked on the internet to learn more about the issue and found most individuals will go along with your

iews on this website.
Posted by: Halliday - Sunday, February 9, 2014 4:12 AM


xbox 360 emulator for pc windows 7 64 bit
Posted by: Zwar - Sunday, February 23, 2014 4:58 PM


Howdy would you mind letting me know which web host you're working with?

I've loaded your blog in 3 different internet browsers and I must

say this blog loads a lot faster then most. Can you suggest a good internet hosting provider at a honest price?

Kudos, I appreciate it!
Posted by: Cheeke - Sunday, March 16, 2014 7:57 AM


Quality articles is the secret to attract the visitors

to pay a quick visit the site, that's what this web site is providing.
Posted by: McCary - Friday, March 21, 2014 3:39 PM


No matter if some one searches for his necessary thing, thus he/she

wants to be available that in detail, thus that thing is maintained over here.
Posted by: Durden - Wednesday, March 26, 2014 6:18 PM


Great article.
Posted by: Knowles - Sunday, April 6, 2014 6:10 PM


After looking over a number of the blog posts on your web site, I truly appreciate your technique of writing a blog.

I saved as a favorite it to my bookmark site list and will be checking back soon.

Please check out my web site too and let me know how you feel.
Posted by: Kolios - Sunday, April 27, 2014 2:02 AM


Those who have a very good income will likely

be readily given credit cards as which will assure the loan companies in the ability with

the person to pay for back the credited amount justin timberlake tickets in 2014 (justintimberlaketix2014.com) they know that whenever they don't deliver something you

are interested in quickly, then you definitely will be out your door -

as well as your money will be gone, too.
Posted by: Fawcett - Tuesday, April 29, 2014 4:11 AM


 









WPL
PUBLISHING CO, INC.
WPL Publishing - 5750 Bou Avenue #1712 - Rockville, MD 20852

Phone: (301)765-9525  -  Fax: (301)983-4367

All Content and Design Copyright © 2025 WPL Publishing
About Us

Contact Us

Privacy Policy

My Account