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what recourse do i have in this situation?

i an a flooring subcontractor in Phoenix providing labor for a new home builder design center. i was recently told that i'm going to be back charged $23,000 for a tile floor that we installed and the homeowner isn't happy with the grout joints so they have decided, without any input from me, that i will buy out the homeowner in the amount that they paid to the builder for the upgraded floor. This is many times the actual cost of the material and labor since the builder's mark up is extremely high and the homeowner will still have the floor. The contract that i signed with this company has no provision for back charges.

1 reply

Dec 19, 2019

Dealing with improper back charges can be frustrating and difficult. It appears that this situation is going to boil down to an examination of the contract for work and the work itself. If the contract for work was breached, there may be arguments in favor of the damages incurred as a result of the breach (and at least partially validating the back charges). even in a situation in which back charges are not specifically contemplated by the contract, a party can be liable for damages resulting from the breach of the agreement. However, it is worth having an attorney take a good look at the contract at issue. there may be a "cure period" in which a purported breach could be fixed, and it should definitely set out the specifications of the project. Generally, parties on a construction project are required to perform their work in a workmanlike manner, but this doesn't mean that all work must be perfect. If the work was performed as specified by the contract, and of the appropriate quality, damages or back charges of any sort may not be warranted. Just like many other things in life, the best way to work through a situation like this is to communicate. There appears to be a lack of communication with respect to this issue, and it may be that good communication could avoid it degenerating even further. In the event that money is withheld for work that has been done, and for which you should be paid, it may be that a mechanics lien could be filed to secure the amount due and ensure recovery. Arizona requires certain rules and requirements (notice, deadline, form, etc.) to be met to file a mechanics lien, but when undeservedly unpaid, a mechanics lien filing can be the difference between eventually getting what is due or not.

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