Construction
A major Services Contractor subcontracted a significant portion of a contract to a Subcontractor.
The Subcontractor agreed a fixed price for the job and compliance with the overall contract programme.
Shortly after commencing work the Subcontractor came to the conclusion that the work involved was far more complex than had been described during discussions with the Services Contractor. He realised that he would not be able to do the work for the agreed price and also that he did not have sufficient labour to complete the work to the agreed programme.
He informed the Contractor that he was withdrawing from the contract.
The Contractor claimed that he incurred additional costs in completing the work and because it was not completed to the client's programme, he was faced with cost penalties.
The Subcontractor counterclaimed that he had lost money because he had turned down other work having been misled about the details of the contract.
The Mediation resulted in the Parties shaking hands and agreeing to "walk away" from the dispute.