Home>Levelset Community>Legal Help>I need help to rectify a wrongful wage and termination of my Sub-Contracting project

I need help to rectify a wrongful wage and termination of my Sub-Contracting project

Hello I am an HVAC Sub Contractor in GA. I am involved in a mess. I took on a project that Consisted of the installation of Ductwork for three HVAC systems in a Commercial application. The entire job was finished and Passed the Rough-in inspection, all but a minute few punch items. My GC had no problem paying me through the job until it was time to pay the final invoice. I had no time stipulation and didnt need one because I finished the job in a very reasonable time frame. Then after inspection he wants to say that I didnt do job well Although the. Project Foreman and Project management say that I performed my job with great ability. Please can you help. I have documented every stage of project in 5 weeks. Thank you.

1 reply

Dec 18, 2019

Unfortunately, it's relatively common for a customer to try and avoid making a full final payment by claiming the work is insufficient. Often, that's used as a tactic to try and negotiate a lower final or retainage payment. Of course, a contractor cannot simply withhold final payment for alleged defective work without also backing that claim up. Certainly, a contractor can withhold payment if there are actually issues with the work - like defective work, disputed work, causing damage, etc. But even if those problems are present, a customer will only be able to withhold a reasonable amount of payment to cover those issues. In any event - it may be helpful to request, in writing, the alleged deficiencies with the work. Further, if third parties have agreed that the work was perfectly acceptable, then requesting that they provide those opinions, in writing, could be helpful, too (if that hasn't already been obtained). If a subcontractor can show their customer overwhelming proof and documentation that the work was sufficiently completed, then it will be harder for the customer to justify withholding payment.

Payment claims when a customer refuses to make final payment

Of course, sometimes, it may be helpful to be a little more forceful in making payment claims. Below are a few potential options that can be helpful in shaking payment loose from an unwilling customer.

Demand letters

Escalating a dispute by sending a formal demand letter can move things in the right direction. A demand letter which includes specific legal threats and sets a hard deadline for payment can go a long way toward compelling a contractor to make payment. More on that here: Demand Letters for Contractors – How To Write One That Gets You Paid.

Notice of Intent to Lien

Mechanics liens are an extremely powerful tool for recovering construction payment - making the mere threat of a lien claim powerful, too. By sending a document like a Notice of Intent to Lien to both the customer and the project owner, it may be easier to put pressure on that customer to make payment. Nobody likes mechanics liens, and if an owner is aware that a lien may be filed because their contractor is improperly withholding payment, they may be able to apply the final bit of pressure needed to get a customer to make payment. More on that here: What Is a Notice of Intent to Lien and Should You Send One?

Pursuing a mechanics lien claim or other payment claim

Of course, threats and demands won't always be effective. So, actually moving forward with a mechanics lien claim may be necessary. On that front, these two resources should be valuable: (1) Georgia Mechanics Lien Guide and FAQs; and (2) How to File a Georgia Mechanics Lien – Step by Step Guide to Get You Paid. What's more, legal claims claim based on Georgia's retainage laws or a claim for breaching the contract may be on the table, too.

0 people found this helpful

Helpful