My question involves a consumer law issue in the State of: Hawaii
A subcontractor bid a project, received a signed subcontract agreement, started the work, and upon starting the work realized that they bid too low and cannot afford to finish the work. The subcontractor walked off the job. The subcontract agreement allows general contractor to find another subcontractor to do the work and it appears that the subcontract agreement allows general contractor to charge subcontractor for the added cost of hiring another contractor. For example, if original subcontract agreement was $100k and the cost of new subcontractor is $150k, can the general contractor collect the $50k from the original subcontractor?
If so, would general contractor have to sue the original subcontractor? Is this typical? Or, what typically happens when a subcontractor cannot finish their work on a job site?