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Can an HVAC contractor be back charged if they call out another HVAC contractor if they have warranty?

Hi we are HVAC contractors in Texas. In our attempt to collect final payment on a contract, the general contractor is claiming their was an issue with the job and they had to call another HVAC contractor to fix the job. They are trying to deduct it from the amount owed? They refuse to pay the rush fee for some of the materials and they still owe us funds from the original contact but refuse to pay it.I want to just get the money owed to us? Can they do this? Also in order to get one of my payments they forced me to sign a 1 year letter of warranty. Since they are not paying me am I obligated to keep going out to the job site every time they say it's hot? If I don't go anymore can they charge me back?

1 reply

Jan 20, 2020

Ultimately, things may come down to what's allowed under the contract. If the contract specifically allows it, then they may well be entitled to bring someone else and back charge for the value of the fix. If the contract is silent as to how defects should be fixed, and if it's silent as to what may be appropriate for back charges, then there may be room for a dispute as to how the matter should be handled. And, certainly, if the contract specifically provides a sub to correct their own work - then a contractor shouldn't be able to bypass that and bring someone else in to do the work. As for the effectiveness of the warranty - that, too, will come down to the terminology of the warranty itself, in all likelihood. Often, a warranty will contain provisions that will void the warranty in the event that some third party has performed work on the specified warranted portion of work. So, if that's the case and a third party has altered the original work, then the warranty may have been voided. But, if no such provision exists, then there may be some gray area. Considering how fact-dependent and contact-dependent the above question is, it'd likely be wise to reach out to a local Texas construction attorney for clarity on the matter. They'll be able to review the project documentation and any other relevant info then advise on how best to proceed.

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