How to Fire Your Contractor
Your construction project is two months behind schedule. Work on the site has slowed to such an extent that very few men are actually working on the site. You had hoped for an early opening of this office building but it now looks as though instead of eight months to complete the building, it will take over one year to complete. Your relationship with the contractor has always been cordial and his excuses for the delays sounded reasonable however lately the contractor always seems busy on someone else’s project, which is three times the size of yours and is slow to return your phone calls.
What do you do? Fire your contractor? Not necessarily…
Maybe what you and your staff need to do at this time is rethink your priorities regarding this project and your contractor’s poor performance. Your contract with the contractor allows you to terminate the contractual relationship for substantive cause, so you can fire the contractor, however
You might explore the following options before taking such a drastic and costly step:
When you meet with your building contractor you will be prepared to cancel his services if they do not present you with a feasible plan for getting the project back on schedule. However I would like to add one word of caution regarding the firing of a contractor. If they are willing to get the project back on schedule and you put in place an additional $2,000.00 per lost day penalty, your best course of action could be to allow them one more month to straighten out this job and hire a consultant to monitor the compliance of your final agreement and issue you a daily progress report which must be closely tracked to insure that your building is going to be completed on time and on budget.
copyright: Zeller and Associates 06/27/2010