Reference no: EM132403490

Western Rock Removal, Inc., agreed to work as a subcontractor on a sewer project on which Allegheny Water, Inc., was the general contractor. For drilling and blasting a certain amount of rock, Rock Removal was to be paid $29 per cubic yard or on a time-and-materials basis, whichever was less. From the beginning, Rock Removal experienced problems. The primary obstacle was a heavy concentration of water, which, according to the custom in the industry, Allegheny should have controlled but did not. Rock Removal was compelled to use more costly and time-consuming methods than anticipated, and it was unable to complete the work on time. The subcontractor asked Allegheny to pay for the rest of the project on a time-and-materials basis. Allegheny signed a modification of the original agreement. On completion of the work, Allegheny refused to pay Rock Removal the balance due under the modification. Rock Removal filed a suit in a Pennsylvania court against Allegheny. Allegheny claimed that the modification lacked consideration was thus not valid and enforceable. Is Allegheny right? Why or why not?