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Owner Withholding Payment

 
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Old 05-15-2009, 02:20 PM   #1
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Owner Withholding Payment


I am working on a project with state and federal funding for a municipality. a town resident has claimed our company caused structural damage to his home for an amount of $3800. i just received a letter from the city that they will be holding that amount out of our final payment.

is this correct? can they do this?

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Old 05-15-2009, 02:27 PM   #2
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Re: Owner Withholding Payment


Sounds like you need to call your lawyer instead of posting on the internet.
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Old 05-15-2009, 02:28 PM   #3
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Re: Owner Withholding Payment


Quote:
Originally Posted by rshackleford View Post
I am working on a project with state and federal funding for a municipality. a town resident has claimed our company caused structural damage to his home for an amount of $3800. i just received a letter from the city that they will be holding that amount out of our final payment.

is this correct? can they do this?
Review your contract. I would start there. Good luck.
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Old 05-15-2009, 02:40 PM   #4
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Re: Owner Withholding Payment


it is a standard EJCDC contract.
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Old 05-15-2009, 04:03 PM   #5
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Re: Owner Withholding Payment


So what happened to his property?
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Old 05-15-2009, 04:16 PM   #6
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Re: Owner Withholding Payment


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So what happened to his property?
What is he alledging happened to the property?
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Old 05-15-2009, 04:19 PM   #7
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Re: Owner Withholding Payment


since make the original post i have contact my insurance agent he has asked me to create a claim for the damage. i have don so.

the homeowner is alleging that our volvo ec 330 caused cracks in his drywall.
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Old 05-15-2009, 04:32 PM   #8
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Re: Owner Withholding Payment


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since make the original post i have contact my insurance agent he has asked me to create a claim for the damage. i have don so.

the homeowner is alleging that our volvo ec 330 caused cracks in his drywall.
So................ you're just going to pay up?
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Old 05-15-2009, 04:35 PM   #9
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Re: Owner Withholding Payment


i am going to let the insurance company determine if the money is due. that's why we pay them the big bucks i guess.

but the real question is if the owner can withhold that payment.
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Old 05-15-2009, 04:53 PM   #10
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Re: Owner Withholding Payment


What does the contract say?
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Old 05-15-2009, 05:57 PM   #11
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Re: Owner Withholding Payment


it is a standard EJCDC contract.
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Old 05-15-2009, 06:08 PM   #12
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Re: Owner Withholding Payment


This may sound like it's coming from Forest Gump But please elucidate on the ejcdc part of the equation.
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Old 05-15-2009, 06:13 PM   #13
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Re: Owner Withholding Payment


it is a set of documents accompanying every state and federally funded project i have ever worked on it. it is called the "standard general conditions of the construction contract: funding agency edition." it prepared by "Engineers Joint Contract Documents Committee" and published by American council of engineering companies, national society of professional engineers, and American society of civil engineers. it is specifically the EJCDC C-710 document set.
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Old 05-15-2009, 06:13 PM   #14
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Re: Owner Withholding Payment


Oh, and it has been endorsed and approved by the AGC.
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Old 05-15-2009, 11:14 PM   #15
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Re: Owner Withholding Payment


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the homeowner is alleging that our volvo ec 330 caused cracks in his drywall.
How? Did you drive over it?
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Old 05-15-2009, 11:21 PM   #16
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Re: Owner Withholding Payment


If you driving on his property caused his drywall to crack he has a lot more issues than the drywall. Weak foundation, unstable framing to name a few.
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Old 05-16-2009, 09:25 AM   #17
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Re: Owner Withholding Payment


the operator was breaking through six inches of frost and shook the whole block.

what and how it happened is not the issue. the question is if the owner can withhold payment for this?
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Old 05-16-2009, 09:31 AM   #18
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Re: Owner Withholding Payment


Who were you working for the town or the owner?
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Old 05-16-2009, 09:32 AM   #19
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Re: Owner Withholding Payment


i have a contact with the town and am working for them.
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Old 05-16-2009, 09:38 AM   #20
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Re: Owner Withholding Payment


That makes it a bit stickier. Did you have to post a bond for this type of damage? I think you are on the right track with contacting your Insurance company. They will provide a lawyer to you at no cost to review everything. They will also ferret out wether the HO is trying to pull a scam. Was only one home damaged? Or only one home you had to get close enoough to. then there might be issues with their structure if say you are digging between two houses and only one was damaged.
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