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Can funds be held and deducted from me for back charges with out a contract or documentation for alleged backcharges ?

I am a sub contractor out of wa state the company I am subbing for has been withholding funds for completed work do to alleged backcharges for unsatisfactory installation they refuse to show any documentation reguarding the improper work or the steps taken to rectify basically it's there word and my money do I have any ground to stand on here?

1 reply

Dec 20, 2019

First, it'd be wise to consult the contract to see if there is any process specified for managing withholdings or back charges. If the contract requires certain procedures be followed, then a contractor should follow those procedures. Of course, it's common (unfortunately) for the contract to be silent on back charges, though withholdings are often covered. If the contract doesn't include any set method for handling back charges or withholdings, a contractor should still provide written notice giving reasons for not paying what's owed. Further, as you mention in your question, a contractor should typically include steps that can be taken to obtain payments withheld due to work that's allegedly improper. And, documenting the work with photographs is a common way to ensure there's no funny business going on.

Recovering payment that's being improperly withheld or back charges improperly made

Note that just because a contractor withholds payment or makes back charges doesn't mean that payment claims aren't on the table. When unpaid under questionable circumstances, subcontractors and suppliers can take steps to get paid what they're owed.

Demand letters

For one, sending a demand letter can help. Demanding documentation and supporting information regarding a back charge and/or withholding might be a good start. But further - demanding that payment be made and threatening to pursue legal action could force a contractor to pay what's owed on the job.

Notice of Intent to Lien

What's more, threatening to pursue a mechanics lien claim can be an even more powerful recovery tool, when needed. A Notice of Intent to Lien is a warning shot before a lien filing. It lets recipients know that if payment isn't made and made soon, then the claimant won't hesitate to proceed with their lien claim. And, to put additional pressure on an unwilling customer, it can help to send a copy of this notice to the property owner, as well. More on Notices of Intent here: What Is a Notice of Intent to Lien and Should You Send One?

Filing a Washington mechanics lien

Filing a mechanics lien is typically the nuclear option, but sometimes lien filings become necessary. And, to be sure, mechanics lien claims can be filed even if there's a workmanship dispute and even if there's a dispute as to what's owed. If things come down to it, here are some resources that might be valuable: - How Do Mechanics Liens Work? 17 Ways a Lien Gets You Paid. - Washington Mechanics Lien Guide and FAQs - How To File A Washington Mechanics Lien | Step-By-Step Guide to Get You Paid

Other recovery options

Of course, there are always other options for recovery outside of the mechanics lien process. Any time payment is owed but not being made, there's a chance that legal claims - such as breach of contract - may be available. Though, to best understand what legal claims may be available, it'd be wise to consult a local Washington construction attorney so they can review your documentation and circumstances and advise on how to move forward.

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