So you enter into a subcontract to furnish improvements for a set cost, everyone agrees, and then your subcontract is terminated for no reason, except that the general contractor has found someone who is willing to perform at a cheaper cost. Is that bad faith? Can the general contractor just cast you aside without repercussion? If your subcontract contains a termination for convenience clause, they most likely can. Continue reading...
Even when the bond says no, you may be entitled to lost profits for unperformed work!
In The Plumbing Service Company v. Progressive Plumbing, Inc., Case No. 5D09-3171 (Fla. 5th DCA Oct. 22, 2010), The Plumbing Service Company ("Plaintiff") had sub-subcontract with Progressive Plumbing, Inc. ("Subcontractor"). Plaintiff sued Subcontractor alleging that Plaintiff had completed its work on 15 of 230 condominium units when Subcontractor breached the agreement by ejecting Plaintiff from the project before Plaintiff had time to complete its work under the contract. Plaintiff had successfully recovered for the unpaid work performed against a surety that had issued a payment bond for the project.
