Cian BrennanFounder, Quantum Contract Solutions · Founder

What to do when your construction client takes away your Scope of Work

Name: What to do when your construction client takes away your Scope of Work
Uploaded: 2022-09-21T04:45:12+00:00
Duration: 29 s
Channel: Cian Brennan
Description: When a client cuts your scope of work, check your contract for clauses that let you recover costs for labor, materials, and equipment you already…

21 Sept 2022 · 0 min

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When a client cuts your scope of work, check your contract for clauses that let you recover costs for labor, materials, and equipment you already mobilized. You won't get the profit on the lost work, but you're entitled to payment for resources already committed.

What can you do when the client, the principal developer, takes away half your work or all of your work on a project? Well, if you look into contractors, a lot of times you can see that you can recoup some of your money with regards to saying, hey, well, we actually came on board to service 100% of the work, right? So we got more people, we got more materials, we got more equipment to be able to deliver 100% of the work. You took 50% of that away. We still have all of these guys and we're entitled to be paid for those guys because we're not going to be able to recoup the profit for those guys. So check your contract out. You might be able to save some money.