Chapter 1: A Verbal Understanding
In the midst of a bustling city, Jack Reynolds, an experienced subcontractor, eagerly embarked on a new venture. With a contract in hand for a significant commercial project, he was ready to demonstrate his skills and competence. Unfortunately, the complexities of contract management would soon test Jack’s trust in the system.
Chapter 2: Uncharted Territory
As the project progressed, unforeseen circumstances and the general contractor’s requests led to additional work beyond the original scope. Eager to accommodate the general contractor and maintain a positive working relationship, Jack proceeded with the extra work based on verbal agreements. The general contractor expressed satisfaction and assured Jack that he would be compensated accordingly. Fueled by trust and a shared understanding, Jack continued to invest his time and expertise into the additional work.
Chapter 3: A Legal Predicament
Upon completion of the project, Jack submitted his invoice for the additional work performed, only to be met with resistance from the general contractor. The general contractor contended that the contract explicitly stated that all change orders must be approved in writing, rendering the verbal agreements invalid. Jack’s trust was shattered, and his hopes of fair compensation dashed. With collection options dwindling, Jack faced the grim reality that he may not recover the amount owed to him.
Chapter 4: The Lawsuit and Its Outcome
Determined to pursue justice, Jack initiated legal proceedings against the owner, armed with evidence of the verbal agreements. However, the court carefully examined the contract and, to Jack’s dismay, ruled in favor of the general contractor. The court emphasized that the contract’s requirement for written change orders were mandatory, rendering the verbal agreements unenforceable. Jack’s hopes for recovery were crushed, and he found himself grappling with the aftermath of a failed lawsuit.
Chapter 5: A Painful Reflection
In the wake of the legal defeat, Jack reflected on the unfair events which transpired. He acknowledged his mistake in failing to adhere to the contract’s provisions, realizing the dire consequences of relying on verbal agreements. The painful lesson taught Jack the importance of documenting change orders in approved, written agreements, when required by the contract.
Chapter 6: A Resilient Recovery
Undeterred by the setback, Jack resolved to learn from his mistakes and keep moving forward. He sought counsel from industry experts to enhance his understanding of contract management and to minimize future risks. Armed with newfound knowledge, Jack reevaluated his business practices, adopting a more disciplined approach to contract execution and change order management.
The Lesson:
Always get change orders signed and approved in writing, especially when it is required by the contract. While there is always a desire to please your customer, contractors must stand on their rights to ensure they are fully and promptly paid for their work. If you have questions about your contract, seek good counsel.
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