Analysis • Advice • Advocacy

Using rescission to address contractor issues

Businesses in the construction sector often hire independent professionals or small businesses for specialized services. Instead of offering a salaried position to a drywall finisher and a tile specialist, the company has a short list of qualified professionals or local companies to hire for upcoming projects.

Typically, construction firms can hire those professionals or businesses on a contract-by-contract basis. They agree to pay a certain amount in exchange for services that meet a specific standard. Unfortunately, some independent contractors or small businesses performing contract work for construction firms may not provide consistent quality. Other times, they may fail to complete a project on schedule.

When a contract breach complicates a construction project, going to court to seek contract rescission may be the best option available.

Can the company still trust the outside professional?

Occasionally, situations outside of a professional’s control may prevent them from completing a project on schedule. Perhaps there was some kind of medical or family emergency that resulted in their inability to complete the project. Maybe an attempt to hire an assistant or take on a partner has led to a slump in overall quality. Even communication issues could lead to delays or substandard work.

It may be possible in some cases to address uncompleted work or low-quality labor with the contractor who did not meet company standards. However, poor-quality work or uncompleted projects can permanently damage the trust necessary in a working relationship.

If the construction firm no longer trusts the contractor or business, asking the courts to end their work arrangements through contract rescission may be the best option available. After rescission, the construction firm has no future obligations to the contractor or outside business.

Other potential remedies may include requesting an order of specific performance. The courts can compel the completion of the project. They can even force a contractor to redo work that didn’t meet contractual standards. Other times, the construction firm could potentially seek damages or attempt to enforce penalty clauses integrated into the initial contract.

Reviewing the state of a project on the initial contract may help construction firms handle a dispute related to an outside professional or business hired to assist with the project. Eliminating any ongoing contractual obligations is sometimes the best legal remedy when the company no longer wants to work with the contractor.