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The answer is yes. The city can ask a contractor to work for less than they allotted in the budget for the project.
However, the contractor does not have to agree, and can enforce whatever contract/bid terms were agreed-upon earlier.
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You have a choice to make:
-you can agree to negotiate, or
-you can mandate that the amount will be raised or kept the same.
However understand that they do not have to renew so once the 3 year contract runs out, the city may simply say "thank you, ***** *****"
It is up to you to decide whether it is worth continuing the relationship for less compensation.
This is a contract situation. They can ask to re-negotiate. They are allowed to do so. However you do not have to agree. And, they have to pay out per contract until the contact ends. But then they do not have to renew.
So, you have a contract at $5/week and it is ending soon, and the city is asking that once it ends, you take $3/week for some time. Is that what is happening?
Ah, I see.
So you agreed to a contract, but your costs for the overhead will mean you LOSE more than you EARN. Correct?
On this website, I do not always get to give good news, and this is one of these times.
If your overhead causes you to lose more than you earn, this is not an affirmative defense to being mandated to finish out the contract. Your company is still bound by the contract it signed with the city. If your company does walk away, the city can sue.
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