I was walking around a local outdoor mall recently and came upon a friend and his three-year-old daughter. After chatting for a bit, the three-year-old looked at my friend and said “Man sad.” The little girl was spot on. I own a general contracting company and the owner suddenly terminated us today, supposedly “for cause.” Something about lacking confidence in us. We have an AIA Contract with the owner. We feel wronged. Do we have any options?
– Man Sad
Dear Man Sad,
Sorry you are sad, man, but it’s time to pick up your britches and fight back. If the termination was wrongful YOU have to prove it. The Owner is certain to come after you for its excess costs of completing the work. Often, fickle owners can get frustrated with the construction process and become impatient and can make many contractors sad by courting the next best thing. The googly-eyed owners often make up a story (pretext) as to why you should be gone. YES … as the jilted party … MAN IS SAD. But if it’s a fake, then it may be converted to a termination for convenience and you have rights. In fact, while the recent AIA A201-2017 has watered down the termination for convenience rights, if the AIA A201-2007 governs your project, you may even recover lost profits for work not executed. And … MAN HAPPY … YouDig?