Contract provision addresses a subcontractor's waiver of claims or rights
This month's contract modification is intended to be used when a roofing contractor is signing a contract form prepared by the general contractor. Many general contractors include language, particularly in the changes section, requiring the roofing contractor to provide written notice of a claim for delay or additional costs within two or three days from the time the claim arises. The resulting penalty from failing to provide written notice within the specified time frame is the roofing contractor's waiver of the claim and agreement it will be treated as a change order with no additional time or compensation owed to the roofing contractor.
The purpose of this contract provision is to avoid a potential windfall to the general contractor. It is reasonable for a roofing contractor to be bound to the same consequences as the general contractor if the roofing contractor fails to comply with the timing requirements, causing the general contractor to lose rights, but if the general contractor does not lose rights then the roofing contractor should be paid the equitable share:
Waiver of claims or rights: "Subcontractor's waiver of claims or rights shall only apply to the extent Contractor is precluded from obtaining recovery from Owner due to Subcontractor's failure to submit its claim in a timely manner."