I got GC for my project and before the job is finished I received a call from subcontractor that if I don’t pay him the remaining he is not going to finish the job. Can a subcontractor ask the owner directly for money ?
1 reply
Jun 1, 2020
If subcontractors are facing payment issues with the GC, then it's the GC's job to resolve the issues. So, bringing this to your GC's attention and demanding they handle it might be a good first step.
With that being said, it's hardly unheard of for a subcontractor to contact the owner if there's a payment dispute at hand. Subs should look to the GC first, but if they aren't getting anywhere, it makes sense for them to contact the project owner. And, often, this should be seen as a positive by the owner - at least the issue has come up before a lien or lawsuit was filed.
Finally - subcontractors generally aren't entitled to full payment prior to the completion of their work. Rather, progress payments are made along the way and then a final payment is made when their work is done. Sometimes, retainage on their work might be held on for a little while after that. Still, everything should be done in accordance with the contract - so looking to their contract for guidance on when they should be paid would be another sound step.