We are a small subcontractor. A GC we are working with says we're not performing, so they've been buying material and backcharging us. The contract says they have to give us the right to cure. Wouldn't that right extend to them buying materials and backcharging us. They also haven't been paying us.

1 reply

Sep 15, 2021
Your rights will be determined by the terms of your contract. However, from your email, it appears that the GC must first give you notice of your breach and the right to cure it. If it fails to do so, it cannot terminate you or backcharge you. In the meantime, since they are not paying you, you have the right to file a mechanics' lien. The first step is sending Notice of an intent to file a mechanics' lien claim. You have to do that thirty (30) days before you file the claim. You also will have the right to file a claim under either the Procurement Code or the Contractor and Subcontractor Payment Act (the applicable statue will depend on whether the project is public or private). I would also recommend filing a claim under one of these statutes as it will allow you to claim/recover you legal costs.

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