My sub is sending my clients directly the prel 20 day lien at their costs not mine. What can I do, I loose my margin when they do this.
1 reply
May 13, 2020
Your clients should know that you are entitled to a margin for your subcontractor's work. The subcontractor is required to include their estimated value of the work to be performed by them in the preliminary notice. The clients might be able to approximate what your margins are based on the value of the subs work. But this is not always straight forward as you play are role and have costs as well. The bottom line is that your clients have agreed to the contract price in your contract and they do not have a direct relationship with your subcontractors. You can't keep the lump sum total that you pay subcontractors secret, but that does not mean you should lose your margins.