Legal Question in Construction Law in California

Integration Contract

We had a purchase order for integration services in which the scope was poorly defined. The client added labor and materials to satisfy there project needs. This exceeded their original P.O. In good faith work continued without written authorization, only verbal consent to finish the project. Full payment has been made on the original P.O. yet the client refutes the amount of the final invoice. What remedies are available to collect the amount due?


Asked on 8/18/00, 2:51 pm

1 Answer from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Integration Contract

The first step would be to determine whether some form of lien could be imposed on the work or work site.

Next, recognize that the issue here is not only how to 'collect the amount due' but also to determine what amount is due. When a contract is poorly drafted or covers only a portion of the material and services furnished, courts will look to several legal theories to determine the rights of the parties including good faith, trade custom and practice, implied terms, unjust enrichment, etc. You should be thinking in terms of recovering a 'fair amount' and not necessarily what you can calculate as the 'amount due.'

Most contract disputes of this sort are resolved by negotiation, mediation, and if necessary, arbitration (either because the contract calls for mandatory arbitration, or because the parties elect it when the dispute arises), and do not go to trial. An attorney experienced in contracts or construction law can advise you (after reviewing the contract, your bill, etc.) of what a court would probably decide upon trial. This expected outcome at trial should govern your expectqations and your tactics in negotiating and mediating with the other party. If good-faith efforts at negotiation and mediation show you're far apart (because the other side is being unrealistic, of course), it would then be appropriate to file a lawsuit.

Often, filing the suit forces the other side to obtain legal advice and for the first time they become realistic in their views on settlement.

So, get a lawyer to look into filing a lien, and to help you determine a sound bargaining position, then start negotiating.

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Answered on 9/25/00, 2:04 pm


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