Small Project Design

  • 1.  Termination of contract with Owner

    Posted 07-17-2015 03:02 PM
    I never dreamed that project would come to this, but here goes.  My client ( or at least half of my client...) has exhibited extraordinarily bad behavior toward the contractor over the course of construction a residential remodel project.  This includes more than the usual host of changes before and after some feature had already been built.  Booze and drugs are part of this ugly behavior.  Decisions are made and reversed a day or two later, and sometimes small objects are hurled.  AIA contract forms include provisions for the owner to terminate the contractor, but they provide little for the contractor to hang his hat on when he wants to leave the project early.  Has anybody out there dealt with anything like this before?  I've already advised the contractor to seek legal help.  

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    Robert George FAIA
    Robert S. George, FAIA, Architect
    San Bruno CA
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  • 2.  RE: Termination of contract with Owner

    Posted 07-20-2015 05:34 PM
    If I as architect were in that situation, my first thought would be, Big jerks usually do themselves in without further assistance.  The contractor will be in the strong position if it is the owner that violates the terms of the contract.

    If I were to pull the contractor aside, I'd say, "follow your contract obligations exactly, document in writing all instructions and comments going forward, copy to all members of the team, and be careful about performing any work without the authorization the contract requires."

    As architect, I'd want to make sure that I also was performing my duties correctly and to my highest level of care because the cross-fire could get dangerous.

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    Donald Wardlaw AIA
    More Than Construction, Inc.
    Oakland CA
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  • 3.  RE: Termination of contract with Owner

    Posted 07-21-2015 06:22 PM
    Excellent advice, Donald. Also, I would avoid even thinking that intervention by a lawyer would help. Just notify and inform your insurer.

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    Allen E Neyman
    Rockville, MD
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  • 4.  RE: Termination of contract with Owner

    Posted 07-21-2015 07:14 PM
    Hi, Folks ---

    Wow, Mr. George, my sympathies.

    One thing I watch for is how my Design meetings with the Client go, how a Client treats ME.  In 31 years on my own, I've had one job that died a "natural death" (never got built), after many, long, dreary, indecisive, hemmin'-&-hawin', etc., Design meetings.  This was, sure-'nuff, for a tiny, fixed-fee (it was a tough year, early '90s) job!

    And then there was the other one, not so long ago.  On about meeting #6, "half the client", who'd been contentious when the other half couldn't make it, just went nuts.  I did my only-ever walk-out, 12 minutes into the meeting!  A portion of the Retainer was refunded, with the usual disclaimers included, and there's been not a peep since.  The additions have been built; they look "kinda" familiar...

    My point is ---
    Someone who's gonna treat the G.C. that way, might show their stripes with you, in Design, etc.
    Then ---
    You can leave, and/or hope bidders will see the Client's nasty disposition...

    My background ---
    I'm by myself, doing often-very-small projects, private work only.  My Contract of choice is the AIA B-105, with 8 additional clauses (on "P. 4").  It incorporates my whole standard, custom Proposal for Services, upon which the Retainer gets paid.  The Proposal includes language explaining that Design is a subjective process, and that I reserve the right to unilaterally withdraw from the project.

    Another factor that helps me, I believe, is that I generally work with real, middle-class people!  Much more pleasant, and appreciative, and I've developed some nice friendships with Clients.  The pay's more modest, but the work is good.

    Good luck!
    Thanks ---
    Bill
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    William Devlin AIA
    William J. Devlin, AIA, Inc.
    Springfield MA
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  • 5.  RE: Termination of contract with Owner

    Posted 07-20-2015 05:37 PM
    Robert,

    If the Contractor terminates the contract the probability of litigation in very high. They can also expect the Owner to call in the bonding company to complete the project. They need to consult with their attorney and review the provisions of the contract for termination. This is a 'big boy' decision on their part, but either way, it is probably not going to be pretty. I think the best thing they can do is to have a meeting with the other half of your client and discuss the issues.


    Dennis

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    Dennis J. Hall, FAIA, FCSI
    Chairman | CEO
    Hall Architects, Inc.
    Charlotte NC
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  • 6.  RE: Termination of contract with Owner

    Posted 07-20-2015 06:03 PM


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    Robert Larsen AIA
    Principal
    Robert R. Larsen, A.I.A.
    Denver CO
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  • 7.  RE: Termination of contract with Owner

    Posted 07-21-2015 10:45 AM
    I'll try again :
    I hope your contractor isn't in too much of a financial hole with his client.  Some years back I had a wonderful trim carpenter who did beautiful work on a high-end custom home.  The client who was much like the one you describe, refused to pay the carpenter for all of his work, claiming that the carpenter had deliberately worked slowly in order to run up the bill.  The carpenter, who is a very spiritual and philosophical person, simply threw up his hands and walked away from thousands of dollars he had rightfully earned, saying "Life is too short!"  I've always admired him for this. 
    Meanwhile, I also hope you and the contractor are documenting everything in writing.  Certainly no changes in the work should occur without written and signed change orders.  It also may be time for the contractor to slow down, taking great pains to do absolutely everything by the book.  If the guy gets physically abusive perhaps it's time to get the police involved and file a complaint.  Can someone on the contractor's staff discretely take video's of the guy's antics ?  
    The contractor should have the right to file a claim against the client within the AIA agreement, which would end up in your lap.  If you can't sort things out at that point, then it can end up in arbitration or court.  So as I said above, document everything ! 
    Good luck !

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    Robert Larsen AIA
    Principal
    Robert R. Larsen, A.I.A.
    Denver CO
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