Beware Of Bogus Construction Back Charges

Recently, I have had several cases where my clients were being assessed large back charges on commercial projects. Only to find out, after a little digging, the evidence relating to the back charge claims was bogus.

What is a Back Charge in Construction?

A back charge involves withholding or deducting money from a contractor or subcontractor's payment for unexpected costs incurred due to their work on a construction project. Often leading to disputes, delays, and issues, it serves as a means for contractors to offset or counter-claim against subcontractor-related expenses.

The Shower Door Incident

I had one client in particular who was hired by a well-known general contractor to provide shower doors for a large multi-family project. My client was hired to deliver the shower doors and another subcontractor was hired to install them.