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As a Contractor do I have to keep working on a job if the owner does not pay my invoices in there entirety?

CaliforniaSubstantial Completion

I am a framing contractor working on a large home for a developer. He has continually shorted my payments and now the amounts he is holding is hurting my company. Can I stop work until he comes current with all invoices..

1 reply

May 13, 2021

It depends on what your contract with the GC says and their reason for not paying in full. Simply stopping work or abandoning the land you on the wrong side of a breach of contract--exposing you to damages (liquidated, costs to replace you, etc.). 

You may have a clause in the subcontract that says you will keep working under "disputed work" while the parties try and resolve whatever issue is leading to the withholding which is one situation or you may have one that says both parties can terminate the contract for convenience which is a completely different situation. 

I would have a knowledgeable construction attorney review your subcontract before you leave the project.

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