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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 115465
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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My subcontractor suddenly stopped work on a "fix bid" project

Resolved Question:

My subcontractor suddenly stopped work on a "fix bid" project and requested more money and to be paid per hour. This is a critical project and he did knowingly, as he was in the middle of working with the customer.

Is he breached his contract by doing this?
Should I request him to return project advance?
Can I sue him for damages and project expenses?
Submitted: 5 years ago.
Category: Business Law
Expert:  Law Educator, Esq. replied 5 years ago.
If your sub contractor agreed to terms on this contract and agreed to the price, then them demanding more money now and stopping work is a breach of his contract with you. You need to first give him written notice to return to work and complete the project as his stoppage is a breach of the contract. Inform him if he is not back to work or you will sue for breach of contact and all damages including any losses and costs incurred to hire someone else to complete the work. Since you have written him, your next step is to inform him he is in breach and you are hiring someone to complete the work, then you will need an attorney to sue him for all of your damages and losses associated with his breach of contract.


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Customer: replied 5 years ago.

It was too short term of a notice - I had to step in immediately and start work with the customer literally 24x7. Can I add my hourly rate to the damages?
Expert:  Law Educator, Esq. replied 5 years ago.
Yes, you can add whatever costs you incurred because of his failure to perform on the contract to your damages in your breach of contract suit against him.
Customer: replied 5 years ago.

I was expecting future business from this client and now it is gone. How can I quantify this into damages? Original project was at 50k.
Expert:  Law Educator, Esq. replied 5 years ago.
Future business is too speculative for a court to generally consider as damages directly flowing from breach of contract. However, if you can prove with statements from the customer that you were GOING TO BE HIRED for other projects that they can specify and put a dollar amount to, then this could be argued to be damages. You are going to have to have your local attorney evaluate the extent of the damages you can claim.
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