Quote:
Originally Posted by monocle
No kidding. Big bucks on the line.
Can someone enlighten me on the 'Council won't deal with contractors who go to court with the City' or whatever the article said?
Does that mean
"sue us: it's over" or
"sue us AND lose: it's over"
?
I wonder what Graham can really gain even if they do 'win'.
Someone previously said that they will take their lumps and move on... now they aren't?
How could this effect their other projects with the City?
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I think it's the first one, though I would imagine that the relationship would deteriorate going forward regardless of if they sue or not. As someone in a engineering group, if we had a vendor do something like this post completion, they likely wouldn't be included on any RFP's going forward.
Generally lump sum contracts are difficult to deal with from both ends as most companies are spectacularly poor at estimates which results in a change orders for the smallest of things, which means that the contract over runs the original budget anyway. Both parties end up frustrated the vendor for the rejected change orders and the owner for the ones they had to approve. Most vendors like Time and Materials contracts for this very reason, which are even worse for the owner to track costs against.