Home>Levelset Community>Legal Help>what general conditions of contract, that we can hold the materials from pulling out and deduct the unpaid retention?

what general conditions of contract, that we can hold the materials from pulling out and deduct the unpaid retention?

1. if the performance bond is already expired, do we have the right to hold all equipment, materials on-site from pulling out? 2. since accounting failed to deduct 10% retention in some progress billing, are we authorized to deducted it on the next billing 10% retention plus the unpaid amount?

1 reply

Jun 15, 2020

If a performance bond was required for the project, it should be for the duration of the project. If the bond has lapsed, generally the remedy would be to demand that it be renewed. Your rights with respect to this likely breach of contract are going to be governed by the contract itself. Generally, with respect to materials that you have paid for, you would have the right to demand that they not be removed from the site. It is less much likely that you could hold the contractor's equipment. If the contract allows for 10% retention and you overpaid, there should not be any issue with adjusting the next payment to ensure that you have only paid for amounts due under the terms of the contract. You should be clear regarding the adjustment being made however. Double check the contract and ensure that your payments meet what is called for under the contract. If you require legal assistance email me to schedule a free telephone consultation. Ryan@huntortmann.com

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