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How do I get payment for base contract, change orders, extras, and excessive / unwarranted back charges

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I supplied and installed materials on a commercial project. The GC withheld major portions of monthly payments or didn't pay at all. I was unable to pay my workers and vendors. Then the GC excessively back charged my contract for work I could or would not perform due to an unachievable expidited schedule due to the GC poor coordination and management. The GC demanded that I put a large unsatiable work force to meet the expidited schedule with the promise of payment then didn't pay. The GC said that the owner was slow in payment. How do I fight the excessive back charges and collect monies due to my workers, vendors and collect for outstanding extras and change orders?

3 replies

Jan 4, 2021

You should start by sending demand notices in accordance w/ the notice provision of the subcontract. You should also discuss with counsel a strategy to make a record of all demands for payment and request for a walk-thru of the site or a meeting to address all back charges.

In addition, you need to keep track of the last date from which you performed work at the site as you must file a lien w/in 8 months (unless the project is for a single-family dwelling, in which case it’s 4 months).



I’d be happy to discuss this matter with you.



Regards,

Gerard Strain

T: +1 (212) 551-1202
gstrain@rosenbergestis.com
733 Third Avenue, New York, NY 10017
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Jan 8, 2021

Look for an arbitration provision. Choice of law. In the interim, document and send a warning letter. 

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Dec 17, 2022

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