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Discussion Starter · #1 ·
We recently finished a job for a GC that was a public bid. We used a subcontractor to do the test and balance report on the HVAC units we installed and part of his work is to turn in his report.

All work on our part is finished except for the reports from this particular sub. The GC wont release our last 10% until this subs report is turned in (it's the absolute last thing waiting).

For whatever reason this sub believes we are not going to pay him for his work so he is holding his report for payment, which obviously we can't get until its turned in. I found another sub that will do the work for the price quoted by the other and would like to use them to redo the report so we could turn it in and get paid.

What I would like to know is, is there ever anything that the first sub could do to hurt us if we did use the other sub? Our contract was only with the GC, their number were the only thing used in our bid to the GC. But since this sub did do his work, just not turning in the report, which is what his whole work would be about, would there be anything legal he could do and get money out of us?

Thanks
 

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He can issue a Stop Work Order which would allow payment except for the disputed amount.

Then a hearing or court will be in order.

This sub of a sub thing REALLY gets old. The next set of specs I am writing will mandate all subs list who & why they are contracting with.

Bottom line is they can make life uncomfortable for you.

What has transpired that he thinks he won't get paid?
 

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Project Superintendent
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T and B is always a PIA! Can't count how many times that has been the last thing required to get "substantial completion" status from the owner/ architect.

Like others have commented, is there something that is causing the T and B guy to think he won't get paid? Did he do a half ass job?

Biggest problem I would see here is that there is always something that the mechanical engineer finds in the report that he wants redone/adjusted/rechecked etc. That's the whole purpose of Test and Balance.

I would probably propose a compromise, such as 50% payment when initial report is turned in, and 50% when approved by the engineer.
 

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Find a way to put the money you owe him into the hands of a third party trust, someone that has no interest in benefiting either side and have them hold the money in escrow if you will. Once the report is turned over the third party releases the money. Think of it like how paypal works, you don't pay the seller or the buyer you pay paypal and then once everything is on the up and up they release the funds.
 

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Just the trickle down theory. The further down, the later you get paid because the people above use the others for financing. A sub of a sub depends on the history of the people above to pay on schedule before giving up all rights since it is better then filing a lien of some sort.

As a material supplier, we frequently had to file a lien (or threaten to) at the request of our customer to "grease the skids". We even did it occasionally for some GCs that had problem owners.
 

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im assuming its not $100,000

just pay him....if you don't have the cash then take out a line of credit for these situations...I have $50,000 I can borrow and payback monthly if I need to....but I also keep a large reserve on hand to pay for these things....I typically pay anyone who works for me the same week...whether its $100 or $10,000.....

whats the dollar amount owed?


in the past I had a prime contractor on a commercial job that took 4 months to pay me...I had to hire subs under me to bustup and repair concrete....I also have to pay my suppliers.....if I don't pay them on time they most likey wont work for me again...I stopped working for the prime contractor over this issue.....
 

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In your contract with him, every detail for payment should be specified.
Him withholding tells me that one of the parties has not abided to said contract.
When I sub state contract out I specifically state full payment apon Engineers certificate of aproval.
I get the money 120 days later, they right away
 

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Tell the jackass to perform his job or you'll find someone who will. The rest of his scope is insignificant with out the report. Commercial work here is all "pay when paid". If he's holding back his report it could be holding up a final payment with a lot of other people's money also.
 

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Tell the jackass to perform his job or you'll find someone who will. The rest of his scope is insignificant with out the report. Commercial work here is all "pay when paid". If he's holding back his report it could be holding up a final payment with a lot of other people's money also.
Exactly- he is probably holding up everybody's last 10% retainage 'cause t and b is a requirement for completion. Get a lynch mob of subs together and go to his office and demand your report.
 
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