Contract Notice and Recognition (Part 4)

This is the fourth post in a series regarding Construction Contract Notice and Recognition.

This post addresses backcharges.  The subject does not have a broad applicability; but is very troublesome to subcontractors and vendors.  This discussion is focused on notice.

Simply, backcharges (or backcharge) is a term of art or a term of the trade to describe an assessment of money from one contract party to another.  Typically, this is done by a prime or general contractor to a subcontractor, supplier, vendor or other subordinate party.  Unfortunately, this is often done unilaterally and without explicit contractual coverage.  Further, the timing of these backcharges is not favorable to the recipient and can lead to pressure to engage in deal making or compromises in order to receive final payment. [Read more…]