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Reasons for withholding payment

Florida

We have a commercial project with a condo association for pool remodel. They are withholding final payment due to an issue with the pool that they feel we caused and they are having this investigated by another company. This issue was not in our scope of work and it does need to be investigated. But they are waiting for this to occur and get the results before discussing payment. They cite a couple of other small issues as well, but project has a warranty with our company and faulty equipment would be handled under the warranty. Do they have a right to withhold payment under these circumstances?

1 reply

May 21, 2020
To answer that question, you would generally look at the terms of the contract. If you have a bare bones contract with very simply terms, then generally, the project owner would be entitled to withhold the amount of money it may cost to finalize the project. The project owner may not withhold monies due for work completed properly. Based on your question, it is possible that at least a partial payment is due now.
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