Only a Contract Will Protect A General Contractor From Being Undercut by Subs

The case of J.E. Dunn Const. Co. v. S.R.P. Development Ltd. Partnership decided by Judge Chasnow of the U.S. District Court for the District of Maryland essentially held, in dismissing a counterclaim, that a contractor (in this case an independent project manager who contracted directly with a subcontractor for performance of the non-management construction work) is owed no duty by that subcontractor not to circumvent the contractor/ p.m. by contracting directly with the owner to finish the work. A reading of the J.E. Dunn case makes it obvious that the contractor/project manager felt aggrieved by the perceived betrayal of the subcontractor which cut this contractor/p.m. out of a five percent commission. The Court was not unsympathetic to the contractor/p.m's grievance; however, the Court made it clear that the contractor/project manager had an obligation to protect itself with the correct contractual language. In the J.E. Dunn case, no such contractual language existed. Contractors commonly complain that problems are caused by the appropriation or attempted appropriation of a project by a subcontractor. Protect yourself with the proper contractual language 

No Comments

Leave a comment
Comment Information
  • Lead Counsel
  • MSBA
  • sl-badge
Email Us For A Response

How Can We Help You

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Frederick Office
170 West Patrick Street
Frederick, Maryland 21701

Phone: 301-732-7675
Phone: 301-668-5111
Fax: 301-668-2770
Frederick Law Office Map

Silver Spring Office
12114B Heritage Park Circle
Silver Spring, Maryland 20906

Phone: 301-732-7675
Phone: 240-833-2284
Fax: 301-942-8296
Silver Spring Law Office Map

Upper Marlboro Office
14452 Old Mill Road
Suite #301
Upper Marlboro, Maryland 20772

Phone: 301-732-7675
Phone: 301-736-5432
Upper Marlboro Law Office Map