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I have a fixed-price construction contract in Florida for a renovation. We signed it several months ago and just obtained permits a few days ago. Now, the contractor demands a higher price due to increased subcontractor costs and refuses to proceed unless I agree to the increase. The contract explicitly states the price is fixed and only allows changes through a mutually agreed-upon change order. I would appreciate advice on the following: Breach of Contract: Does the contractor’s refusal to proceed at the fixed price constitute a material breach of our agreement under Florida law? Damages and Remedies: What forms of compensation could I seek if I have to terminate the contractor—especially regarding costs of hiring a new one and project delays? Arbitration Requirement: The contract mandates binding arbitration for disputes. Should I engage an attorney, or can I effectively represent myself? Next Steps: What immediate steps should I take to preserve my rights
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An attorney would need to read the contract to see if there are any "loopholes" which allow a price increase for subcontractor and material costs, etc. If there are no such provisions, then yes, a failure to proceed at the agreed upon price would likely constitute a material breach. It is always wise to have an attorney represent you if a large amount of money is involved, whether it is a lawsuit or an arbitration.
Answered on Mar 16th, 2025 at 12:58 PM