Masonry Magazine March 2008 Page. 63
Get everything in writing and have a signed contract before proceeding with work.
www.hughesnassociates.com. He may be reached at tim@hughesnassociates.com. Allson R. Mullins, Esq. is an associate with Hughes & Associates. She may be reached at alison@hughesnassociates.com or 703-671-8200.
This article is not intended to provide specific legal advice, but instead as general commentary regarding legal matters. You should consult with an attorney regarding your legal issues, as the advice you may receive will depend upon your facts and the laws of your jurisdiction.
The court was unsympathetic to the subcontractor. The court held that, because the general contractor specified in writing that it would not be bound until it had signed the subcontract, the subcontractor could not have reasonably relied on the general contractor's verbal hiring. Further, the court held that, "[The subcontractor) could not have had any reasonable expectation of compensation for the work it performed in the absence of such a signed subcontract." Therefore, the subcontractor recovered nothing for the work it performed.
Implications
Other courts are following the lead of the reasoning of the Jordan Panel Systems case. A federal court applying New Jersey law recently held that the plain language in a subcontractor's bid, where the bid clearly stated that the bid was for information purposes and was not a firm offer, would be enforced. The court's enforcement of the bid's language barred the subcontractor from recovering any damages from the contractor. As a subcontractor, you should expect and plan for strict enforcement of bid terms and conditions, no matter how severe.
Lessons learned
When putting out bids for a job, you should make sure to thoroughly read and understand the terms and conditions of all the bid documents. Most importantly, get everything in writing and have a signed contract before proceeding with work. As the above cases demonstrate, lack of a signed written agreement can permanently kill your ability to get paid. IMAS
Timothy R. Hughes, Esq. is the principal of the Virginia law firm of Hughes & Associates, P.L.L.C,
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