Partial payment for subcontractor if client or gen contractor rejects Started by zootsuit , Dec 22 2013 12:54 PM Please log in to reply 2 replies to this topic Posted 22 December 2013 - 12:54 PM I tried searching for this here and on the web, but couldn't locate an answer.
In California and most states, a subcontractor must be paid by the general contractor if the sub's work meet the contract's standards, even if the buyer hasn't paid the general. But can the general withhold some or all of the sub's fee if the general accepts the work but the buyer doesn't? I've run into a writing contract with an online company that sells writers' services, which contract provides only partial payment for problematic work from its subcontracting writers'. Are these partial payments legit?
1. General submits work to buyer, who rejects it even after a rewrite. General pays 50% of the subcontracting writer's fee.
2. General reassigns rejected work and pays 1st writer an unspecified amount less than 50% of fee.
3. General accepts late work and pays an unspecified amount up to 50% of fee.
4. General asserts it has the right to make other unspecified partial payments.
Posted 22 December 2013 - 02:30 PM Contracts are contracts. If you sign one it means that you have read, understood, and accept the terms.
I know of no law prohibiting items 1 through 4 from being part of a contract.
Your only protection is if you don't like the terms, don't sign the contract. Warning: Legal issues are complicated. Explanations and comments here are simplified and might not fully explain the ramifications of your particular issue. I am not a lawyer. I do not give legal advice. I make comments based on my knowledge and experience. I guarantee nothing. If you act on my comments without the advice of an attorney, you do so at your own risk. Posted 22 December 2013 - 08:07 PM I tried searching for this here and on the web, but couldn't locate an answer.
In California and most states, a subcontractor must be paid by the general contractor if the sub's work meet the contract's standards, even if the buyer hasn't paid the general.
The law in the majority of states is that a ?pay when paid? provision (i.e. a provision that states that the subcontractor is not paid unless/until the general contractor is paid by the customer) does not determine if the subcontractor gets paid, but rather simply determines when the subcontractor gets paid. Note, however, that this rule only relates to the effect of the customer?s payment (or failure to pay). If the contract provides that the subcontractor is only entitled to payment if the work is satisfactory to the client, for example, then the general contract need not pay the subcontractor at all if the client finds the work unsatisfactory.