Can a GC apply a back charge to my company without providing us an opportunity to fix the issue or also without showing us proper documents showing the work was completed and how much it will/did cost?
1 reply
Aug 14, 2020
To put it simply, notice about back charges depends on the general contractors contract forms. The Associated General Contractors (AGC), American Subcontractors Association (ASA), and Associated Schools of Construction (ASC), standard subcontract form states that a contractor must first provide notice before any back charges are incurred. A subcontract then requires another written notice to be sent 7 days following when the services or materials were provided. And the contractor must provide a written compilation of the charges by the 15th day of the following calendar month. However, many GCs use their own contract forms that may alter any or all of the notice requirements.If notice is not required by contract, it is best practice to keep communication up to allow an amicable solution.
However, keep in mind that back charges are not statutory or provided by the law but are contractual rights. Therefore, back charges are governed by the terms set forth in the contract. It is best to have back charge notice requirements explicitly stated. As a subcontractor, reasonable notice provisions should be provided to the contractor, therefore if and when you incur back charges, be sure you are notified of the charges and provided with ample amount of time to correct, repair, or clean up issues caused by your team's work.
This post may be helpful to you in regards to information about back charges : What Are "Back Charges" in Construction