Virginia Beach, VA asked in Business Law for Virginia

Q: Is it legal for a business to require you to use a compliance co. in order to be paid - months after the fact?

Our small business did electrical work for an apartment complex in Feb. and April. We have repeatedly sent bills requesting payment and copies of our W-9s and COI. Now they refuse to pay us unless we pay a third party company to "ensure we are compliant". Essentially, we have been told months after the fact that they will not pay their invoices unless we pay this third party company. This "policy" has not been mentioned until 3 weeks ago. So we would have to pay $100 in order to get paid the $675 they owe us. It doesn't seem right that this is their policy in October but not a word mentioned when requesting documents in the prior months or before work was started and completed. The Management company is based out of Florida and the apt. complex is in Newport News. Not sure if I have any legal grounds to stand on here. Thank you..

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