Legal Question in Business Law in California

Botched, unwritten subcontract agreement

Negotiating a subcontracting project, I quoted 5 60-hour weeks and required contract language regarding compensation for delays. The primary contractor told me delays required change orders. He then submitted a proposal of 5 40-hour weeks to the owner (I didn�t question this). I began work in good faith without a written contract. After I completed the first two tasks, the contractor gave me details to submit an invoice to him using the owner�s codes, etc. When the deadline lapsed due to the owner�s delays, I asked the contractor to request additional funding; he refused. I still had not received a written contract, so I requested it. I then worked an additional 50+ hours beyond deadline to complete the project. Finally I received the contract, which specified 200 hours, fixed rate, no stipulation for delays. I wrote a letter saying I expected to be paid for 300 hours plus the 50+ hours beyond deadline. The contractor disagreed. He has a 200-hour, indefinite-length contract with the owner, not with me. Is there a legal solution that would be fair to me and the contractor?


Asked on 11/15/02, 8:58 pm

1 Answer from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Botched, unwritten subcontract agreement

There is important detail missing from the question, including: (1) nature of the work (residential, private, public, or whether qualifying for mechanics liens); (2) whether you and/or the prime contractor are licensed; (3) whether the owner had a written contract with the prime contractor (and its terms); and (4) whether any liens or notices have been filed, delivered or posted. Also, you do not mention the dollar value of the unwritten subcontract or whether you furnished materials as well as services.

Assuming you have the required licenses, recovery on an oral contract is largely a matter of evidence and credibility of witnesses. While a lot of heavy-construction contract documentation is often left incomplete until after the work begins, it's a foolish mistake to start until the plans are finalized and the core provisions for pricing, billing and payment are at least in writing in a memo or bid sheet of some kind.

Another question is the connection between a New York-based contractor and a California jobsite, if that is the case.

My overall suggestion (assuming the amount of money in question is, say, over $10,000) is to contact an attorney in the county where the job was, and ask for a free initial consultation by long-distance phone, e-mail, and/or FAX. Someone with the answers to the above questions can advise you more accurately on your chances and best course.

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Answered on 11/18/02, 1:27 pm


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