Read the attached Hollings General Contractors Case Study. After reading the cas

Read the attached Hollings General Contractors Case Study. After reading the cas

Read the attached Hollings General Contractors Case Study. After reading the case study, declare the course of action you would take if you were Paul Hollings. Explain your response, discussing the potential legal and business risks and implications of your actions. Utilize APA format in your response.
 
Reply to the two classmate responses below, explaining how you would then respond to Paul’s actions if you were a subcontractor on the project.
To complete this assignment, review the attached Discussion Rubric.
Manny
“If I were Paul Hollings, my first step would be to reach out to WCB corporation and the subfloor contractor and ask to meet with them on the jobsite to inspect and evaluate the job that was done. If the subfloor contractor says that it was done the right way and in compliance with the specs, then setting a meeting with them both can help each other understand what the issue is. Once they meet in person Hollings would be able to go over the scope of work clause to determine if the design professional is needed “to resolve any conflicts between various subcontractor provisions, plans, and specifications” (Mastin, Nelson, & Robey, 2019.) After this meeting would help Hollings determine whether WCB needs to pay for the job done, or the subfloor contractor needs to fix the issues before getting paid due to the pay-if-paid clause. This would also be a good point to remind the subfloor contractor of how that agreement works so that he understands to resolve the issue first. There’s a lot of other clauses that could be included within their contract such as a termination clause, change order clause, a subcontract indemnity clause, and a dispute resolution clause. 
References:
Mastin, J. M., Nelson, E. L., & Robey, R. G. (2019). Smith, Currie & Hancock’s Common Sense Construction Law (6th ed.). Wiley Professional Development (P&T). https://mbsdirect.vitalsource.com/books/9781119540182″
Alex
“Good evening, Everyone!
The situation regarding the Hollings Case Study is a difficult one for Paul Hollings to navigate. Paul added the pay-if-paid clause to the contract in order to provide added protection for Hollings by only being required to pay the subcontractors if payment is received from the owner (Kelleher, Mastin, & Robey, 2020). This clause puts subcontractors in a very dangerous situation because they don’t have any contract with the owner, and they are relying on them for payment. The subcontractors could never receive compensation for good work because the owner didn’t pay the contractor. For this case study the subcontractors are threatening to quit, and this would further hinder the project. 
In this situation, Paul should pay all of the subcontractors except the subfloor subcontractor. Paul should then look into the contract with the owner that lays out the requirements and specifications of the subfloor. If the work was done to specifications, then Paul can discuss that with the owner in order to receive payment. If the work wasn’t done to specifications, the subcontractor must redo the work to receive compensation. This approach allows the project to continue and finish on time while the subfloor issue is reviewed and addressed. 
Being caught in a situation like this comes with several risks. One of the main risks is legal action from the subcontractors. A pay-if-paid clause is only enforceable if it is the mutual intent of the parties and the parties recognize that payment may not be received from the owner so that the subcontractor assumes this risk as a part of the negotiated contract (Kelleher, Mastin, & Robey, 2020). Hollings could be risking a court case that could result in more expensive fees. Another risk with this approach is the subfloor subcontractor would be left without payment until the subfloor and contract are reviewed. The subcontractor may not be satisfied with going so long without payment. This poses the risk of a tarnished reputation. The subcontractor might express its difficulties with other subcontractors, and this could ruin future relationships for the contractor. While this approach has multiple risks, it satisfies most parties and prevents a complete halt in the project. 
References:
Kelleher, T. J., Mastin, J. M., & Robey, R. G. (Eds.). (2020). Smith, Currie, & Hancock’s Common Sense Construction Law: A Practical Guide for the Construction Professional (6th ed.). Wiley”

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