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LCN September 2006 Legal Matters: Backcharges & Extras09-29-06 | News

Backcharges & Extras

By J. Norman Stark, Attorney at Law




One of the most common sources of misunderstandings between contractors and subcontractors occurs when contractors are forced to clean up after subcontractors leave the job site.
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With greater frequency, problems between general contractors and subcontractors (called here GCs and Subs for short) are based on work required of subcontractors but performed by the GC, for which the Sub is held liable. For example, the cleanup and removal of packaging materials, crates and pallets, in or upon which certain materials and finished fixtures are delivered to the site, are generally the responsibility of the supplier, depending upon the construction contract and agreement of the parties.

When the cleanup is not done, the prime contractor will perform the work or services, and then backcharge the Sub by deducting the amount of the backcharge from the sub?EUR??,,????'?????<

Other disagreements may arise regarding other areas of subcontractor responsibility or benefit, including project acceleration, delay, use of float time, completion of work, timely performance and beneficial occupancy of the tenant or owner.






Who picks up the pallets and other discarded items when construction is over? Putting it in writing can head off arguments later.


Negotiate, and Sign an Agreement

Disputes can be avoided by carefully writing the terms into the contract, particularly when serious questions of money are involved.

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These items can be invoiced as ?EUR??,,????'?????<

In summary, successful construction business practice in the owner-contractor-subcontractor relationship requires three important operating principles:

All contracts, subcontracts and supply agreements must be negotiated carefully and drafted skillfully to confirm all of the terms of agreement between the parties.

The GC?EUR??,,????'?????<

All of the parties to the construction contract and process must be willing to meet and to resolve all disputes immediately, fairly, and without accusations or legal threats, or delaying or jeopardizing timely completion of the project.

J. Norman Stark is an attorney-at-law, a registered architect, registered landscape architect, planner and senior appraiser. His office is in Cleveland, Ohio. His web address is jnormanstark.com






J. Norman Stark is an attorney and a licensed landscape architect in Cleveland, Ohio.


 

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