Tag Archives: subcontractor bids

The Ties That Bind, and Those That Don’t: Subcontracts v. Sub-bids

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.

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Filed under NC case law, Subcontractors