Our general contractor client, engaged in a $6 million multi-phase project, asked for our assistance in addressing a critical subcontractor delay affecting essential site utilities and infrastructure. The subcontractor’s repeated failure to complete key tasks threatened the project schedule and exposed our client to potential claims from the project owner. We drafted a notice of potential termination for cause, citing specific violations of the modified AIA Document A401–2017, Standard Form of Agreement Between Contractor and Subcontractor, and demanded immediate corrective action. The notice outlined the consequences of continued non-performance, including termination, replacement, and a lawsuit to recover damages. This prompted the subcontractor to return to compliance, averting the need for termination and allowing the project to continue without further disruption from this subcontractor.
