Legal Question in Business Law in Pennsylvania

Are you legally alllowed to fire a contractor you hire, and then hire one of their subcontractors to finish doing their job?

Asked on 6/04/12, 8:48 pm

1 Answer from Attorneys

William Adams Adams Legal Group, PLLC
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This would be governed by the terms of the contract, as to whether you have grounds to get out of the contract - such as a material breach by the contractor. There may be other "exit" clauses to the contract that provide you with a way to get out of the contract.

However, one additional issue that may be of even greater concern, is that the Contractor and Sub may have a non-compete and/or non-solicitation agreement as between them. As a Morgantown business law and contract attorney practicing in both WV and PA, I would always advise my clients, if they are contractors, to enter into written contract with subs to prevent BOTH solicitation AND competition. There is a slight difference, which does not need delved into here, except to say that even if you approached the Sub and they did not solicit the work from you, they may be bound not to compete with the GC on the project.

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Answered on 6/08/12, 11:22 am

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