Electical Contractor

Sometimes the last 5 or 10 percent of the job is the hardest to complete, and the most expensive per item. You think that you have reached substantial completion and want to come to an understanding about what is left to be done for final completion and final payment.

There are hundreds of examples: no written contract for a small commercial repair or home improvement; a “letter of intent” so you can start work; verbal direction to perform extras; your written contract not signed by the owner. Do you have an enforceable contract?

It is common practice in construction for an owner to require lien releases when payments are made. This way, the owner hopes to obtain assurances that the general contractor has paid its subcontractors and suppliers.

Some time ago, I represented a pharmaceutical company, which for years had employed an electrical contractor for maintenance and upgrades to its plant on a time-and-material basis. The owner then contracted for a new building to manufacture and package a dietary powder.

Change orders can be expected in construction, including error and omission corrections in the contract documents, changes in design, taking account of changed conditions, and change orders for claims (overtime, delays, and interferences).

The electrical contractors I know are intelligent, honest, and intent on doing a good job. These traits are significant and worthy of respect. But, by themselves, they will not protect you from “ailments” that are endemic to the profession.

Every year, federal and state courts issue hundreds of decisions on construction contracting. Most of these cases are highly fact-specific, although they apply well-established contract law.

Adverse events that cannot be blamed on the parties can, and do, occur on construction projects. Where the events are predictable (rain, snow, cold weather, etc.), the contractor is usually presumed to have accounted for them in its bid and schedule. No additional time or money will be given.

This article addresses the situation when a project is flooded with extra work orders, emergency field orders, and major and minor systems changes.