I frequently receive phone calls from general contractors curious to know what their legal rights and obligations are with respect to subcontractors before a subcontract agreement is actually reached. Invariably, these calls entail answering one of two questions:(1) Can I sue a subcontractor who wants to back out of its sub-bid or estimate? Or,
(2) Am I obligated to use a subcontractor upon whose sub-bid or estimate I based my prime contract price?
Generally speaking, the answer to both questions is “No.” That’s partially good news for subs, and partially good news for GC’s. Here’s why.