Sub on a Public Works project, State of California. I was put off time and time again for payment. Told the GC had not been paid. He lied outright. He had been paid. Then, to settle at 10c on the dollar, he presents 32000 of work he claims he did, as a lump sum. on electrical? He has no license for this. He never cited it for cure. This is to me, pure extortion and also there are elements of entrapment. There is more to know, but I would like to discuss off line. The above is true and correct. Another anomaly, DIR in California has no filing from this GC for this project. Zero.
Public works projects have some harsh penalties when a GC doesn't pay its subcontractors, but the Owner has paid the GC for that work. Backcharges are common in payment disputes, how they're handled often depends on what your contract says. But, it's not a great start if there was no notice of them because, if there really was deficient work, then you should get an opportunity to correct it as the subcontractor. Moreover, a well-developed back charge claim will have a lot of backup with it (e.g., T&M sheets, daily reports, NOTICE to the person who will be backcharged, notice to cure, etc.).
We do a lot of public works. So reach out by email if you're interested SRD@manningllp.com