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My small company has a contract to build a storage facility

My small company has a...
My small company has a contract to build a storage facility and have been constantly harassed by project manager who is family friend of owners and who actually bid the contract but didn't get it. We have consistently been denied materials we need by project manager and now we have received via text message from a manager assisting the owners that he has given the project manger permission to bring in his own people to start building. We have received nothing from actual owner per contract and nothing in contract states time limit for work to be completed. We have continued to build and have not delayed any other labor on jobsite, however we have been delayed numerous times due to lack of materials and changes to plans by owners and project manager. We will lose tens of thousands of dollars on this project if we are not allowed to complete it.
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Answered in 7 minutes by:
10/29/2013
Dimitry K., Esq.
Category: Legal
Satisfied Customers: 41,221
Experience: Multiple jurisdictions, specialize in business/contract disputes, estate creation and administration.
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Thank you for your question. Please permit me to assist you with your concerns.

I am genuinely sorry to hear that you are in this situation. What specifically can I answer for you, what is your question?
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Customer reply replied 4 years ago
Do we have a case for breach of contract and any legal recourse against the project manager or owners on his behalf? The contract states changes are to be on writing and I'm sure they didn't mean a random text message, not even from owners mentioned in contract but one of their employees to one of mine. These other people are supposed to be starting immediately he said and they will be taking work and therefore pay from my company.
Susanna,

How much of the project did you complete at this time? Is the project manager still involved with this project or not? My apologies, I am unclear as you stated that he bid to get it but did not--what exactly is his relationship to the underlying project itself?
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Customer reply replied 4 years ago
He owns a business and is a family friend of owners. We recently were informed that he bid this contract but we won the bid. He wanted the entire project but contract was given to my company and he was made project manager . He was to be on site and order materials needed and make sure job ran smoothly. He has done nothing but delay our work, refused to supply proper materials and harass our employees, and then we find out he wanted this job all along and he has been continuously telling owners we are not doing our job and now apparently has succeeded in being told to bring in his own people, we have not been released from this job but they are going to pay the project managers people and therefore him too. We will lose a lot of money that was contracted to my company.
Susanna,

Final question--have you brought this up with the customer and requested that the customer intervene so you could perform the project as requested?
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Customer reply replied 4 years ago
A couple of times and have been dismissed even being told we just need to work faster and get buildings up and the project manager is just doing his job and thats just how he is, we have been told to go buy our own materials and bill them, which held up progress and the project manager even at one time threw a parts list on the ground and said this means nothing to me because he stated the buildings were numbered instead of lettered and refused to go get them.
Customer reply replied 4 years ago
We were told they have a chain of command and for us to go to the project manager or the other guy, the owners are located out of state and so is the manger over the project manager, we have kept the manager informed and he has informed the owners who apparently have sided with the project manager as they ultimately are bringing others in. The owner has made a few appearances at job site and rarely speaks to anyone but project manager.
Thank you for your follow-up, Susanna.

The potential options that I see for you are thus:

1. Against the project manager you possibly have a cause of action for 'tortious interference with a business interest'. This is a civil violation or tort that you can pursue if you can show that the project manager is (1) intentionally aware of existence of valid contractual relationships between you and third parties or a valid business expectancy of a contract between you and third party, (2) the defendant is aware and has knowledge of this relationship or expectancy, (3) he intentionally interferes with the defendant by inducing a breach of contract or a breach in the expectancy, and (4) there are damages. I see that as the strongest option if there is obviously a past interest in obtaining the project, and that he went to pursue your business as a means of cutting you off the initial agreement.

2. For the customer I see a claim for 'breach of contract' on the grounds of 'bad faith'. Examples of bad faith that you brought up were the constant modifications but requests that you keep to the initial terms, and failure to provide you with an environment where you could adequately perform your own agreement. I do not see some sort of conspiracy here between customer and manager, and that is why I see separate causes of action in this case.

Hope that helps!


Sincerely,

Dimitry, Esq.
Dimitry K., Esq.
Category: Legal
Satisfied Customers: 41,221
Experience: Multiple jurisdictions, specialize in business/contract disputes, estate creation and administration.
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Dimitry K., Esq.
Dimitry K., Esq.
Dimitry K., Esq., Attorney
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Satisfied Customers: 41,221
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Experience: Multiple jurisdictions, specialize in business/contract disputes, estate creation and administration.

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