Question
Contractor accepts a subcontract bid from Mechanical Subcontractor. Contractor enters into a contract with Public Owner and Mechanical Sub. Mechanical Sub does not file any
Contractor accepts a subcontract bid from Mechanical Subcontractor. Contractor enters into a contract with Public Owner and Mechanical Sub. Mechanical Sub does not file any intent to enforce their rights before, during, or after Mechanical Sub's work is complete. Owner requested certain extra work not indicated in the bid documents, part of which Mechanical Sub had some scope. Mechanical Sub priced the changed work and completed their scope based on Contractor's notice to proceed for the change order. After the project is complete, Owner contends that Mechanical Subcontractor priced the change order work too high, based on their expert engineer's estimate for the work. Owner refuses to pay any portion of the change regarding Mechanical's scope on the change order. The jurisdiction requires intent to enforce rights within seven days of signing the subcontract. Call of the Question. Discuss the Mechanical Subcontractor's rights. Hints on how to do the homework:
A. Always start a Contract analysis by identifying if the common law or UCC applies.
B. It helps to diagram the parties, their relationship and terms especially who is a merchant or not. If there are several parties involved, you may need to discuss IRAC for each party.
C. Identify with whom the Mechanical has privity. This is your first analysis.
D. If Mechanical has no privity with Owner, then discuss any legal recourse Mechanical has against Owner - lien is not an option.
E. When you find the issue(s), determine which contract rule applies.
F. Now determine if the elements of the contract principle are satisfied based on the facts presented.
G. Extra Credit will be granted for an analysis of damages available to Mechanical.
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