Implications for Contractors Discussed by Angela Styles in Construction Dive Following Potential Halting of Border Wall Construction
In the event that President Joe Biden decides to suspend construction of the U.S.-Mexico border wall, the ramifications for contractors and subcontractors involved could be significant. According to Angela Styles, a partner at Gump government contracts, this potential end to the project serves as a stark reminder of the risks that contractors take when entering into agreements for controversial or political projects.
The liability from a termination for convenience could extend not only to the contractor themselves, but also to sub-subcontractors. The potential financial loss for these parties could be substantial, stretching to the profit expected from the entire project, rather than just the work performed up to the point of termination.
This risk is heightened due to the political nature of the border wall project. The language in subcontracts that mirrors the government's right to terminate for convenience is a common practice to mitigate the risks associated with such controversial projects. Some contractors even add this language to their subcontracts to further protect themselves.
If a prime contractor is terminated for convenience, the greatest risk lies in the termination of agreements with subcontractors. This could have a ripple effect, affecting not only the prime contractor but also their subcontractors and sub-subcontractors.
However, it should be noted that the search results do not provide the names of the subcontractors currently working on the U.S.-Mexico border wall who might be affected by cost-saving cuts if Biden were elected president. The information mainly focuses on the construction status and features of the wall but does not mention specific companies or subcontractors involved.
In conclusion, the potential termination of the U.S.-Mexico border wall construction project serves as a reminder of the risks that contractors and subcontractors take when entering into agreements for controversial or political projects. It is crucial for these parties to carefully consider the language in their contracts and to protect themselves from potential financial losses.
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