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How can a contractor back charge you with out informing you.

My company completed a project back in August of 2019 and have field a lean on the building in which the work was done last week they sent me a back charge for what was almost the total amount that was to be paid out for final payment. They never contacted me about any problems.

1 reply

Feb 6, 2020

Generally, back charges should be made in accordance with the contract. Further, written reasoning for the back charge should typically also be included. And, it's pretty customary to provide an opportunity to cure issues before simply back charging a sub for them seemingly out of nowhere. So, even if there's nothing malicious about this particular back charge, the situation sounds a bit messy at the very least. Since you mentioned that the back charge pretty closely matches up to what's owed for final payment - it may be a good idea to approach the back charge with skepticism. It's not unthinkable for a contractor to try and back charge a sub out of retaliation or to try and make it appear as though no additional payment is owed on the project. A contractor can't simply reduce the amounts they'll pay their subcontractors on a whim. So, if there wasn't an actual issue with the work, or if the back charge isn't justified with corrective work, then there may be solid grounds for challenging the contractor's accounting. Regardless, if a contractor has issued significant back charges on a job, their subcontractor is fully within their rights to demand documentation and accounting supporting those back charges. For more on the basics of back charges: What Are “Back Charges” in Construction?

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