In June 1965, the Rolling Stones released, "I Can't Get No Satisfaction." Careless subcontractors may get no compensation if an owner does not pay the contractor or delays the project.
New generation contracts can be compared to a slow leak in your truck tire. You ignore the leak and keep adding air until your driving down the freeway at 65 mph and your tire goes flat as a pancake. You knew it was coming but you chose to ignore the problem.
One of these new generation contracts hit my desk just before I left for Sitka, Alaska, to do some salmon fishing. I met up with 20 of my great co-workers in Seattle and we departed for the famous Talon Lodge, located on Apple Island, just off the coast of Sitka. Apple Island is not a place to think about work-especially when you are in the company of 20 of the most competitive fishermen you would want to meet.
As I reviewed the subcontract, I noticed a peculiar statement, which was a clear tip-off that it was a new generation subcontract.
"Subcontractor shall not be compensated for any delays caused in whole or part by the owner."
This is a very broad statement that would require, at minimum, some thinking or at most some advice from an attorney.
Specifically, what delays could an owner cause a subcontractor? If you're skimming a contract and you come across the phrase, "Subcontractor shall not be compensated for any delays caused in whole or part by the owner," it may not be a concern to you because you're focused on scope of work, price and payment terms.
What kind of delays are we talking about? Payment delays? Schedule delays? Delays in making decisions on things only the owner can decide? Because I was unsure, I called the general contractor and asked if it had the same language in the contract with the owner? The GC said it did not but that that language was put in all of our subcontracts in the event the owner does delay the project.