It\'s mid July 2018. You are the project manager in a progress meeting for a con

Question

It's mid July 2018. You are the project manager in a progress meeting for a construction project to build a multi-million dollar facility to make wood pellets in Gatlinburg, TN. Your company has signed a contract to supply bags of wood pellets to WalMart. The contract with WalMart calls for the first deliveries to be made December 15, 2018. The construction contract calls for the wood pellet facility to be complete and ready to start up operation on October 1, 2018. That schedule is tight since you know from experience that start-up of this type of facility can eat up a lot of time. The contractor has just handed you a revised construction schedule and it shows the completion date as November 1, 2018. The contractor says he's having trouble getting some of the equipment that has been ordered from a firm in the EU. He ordered the equipment too late to get it shipped before they closed for two months in the summer. What legal options available to your company? How would you proceed?

Explanation / Answer

The completion requirement of the construction was specified in the contract or agreement signed between the project manager’s company and contractor. In reality, the construction company wants to get the completion date to be postponed by 1 month. It is a clear breach of the terms and conditions of the contract. Any contract adherence needs to be done, by fully complying with all the pre-specified terms and conditions.

This is a clear case of the material breach of contract. Contractor has failed to perform the serious clause of completing the construction within the pre-decided time period. The project manager can sue the contractor and seek damages from him.

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