Q: Can a GC hold payments to a sub for work done from one project to another?
Currently working for a GC on several individually contracted projects. As a specialty sub we completed a project about 4-5 months ago. Approx. 2 weeks ago thru GC's project review it was realized that we the sub owed the GC for a material credit for items that they purchased on our behalf, to which we agree. The GC is now trying to deduct the cost of the material plus now they feel that our labor rates were too high and are disputing that as well. We provided the GC a detailed proposal of what we would provide and do for a lump sum, which they agreed to and signed a purchase order for us to proceed to perform. We performed to contract. Can the GC come back now and dispute labor rate? We have been paid in full for this project so technically we owe the GC monies for the material. Can GC hold or co-mingle monies due to us from other active projects / contracts? In my opinion I think GC has $$ issues and is attempting to shake down subs in order to recover for their losses & own mistakes
A: Unless you do what the GC wants you will probably not have to worry about this anymore. All of this should be settled by separate contracts for each separate sub job.
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