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Roger, Attorney
Category: Legal
Satisfied Customers: 31765
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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General Contractor is requiring us a Sub Contractor to give

Customer Question

General Contractor is requiring us a Sub Contractor to give him invoices from our suppliers before he will pay us? In essence will not pay unless we go through this exercise monthly. Do we have any recourse
Submitted: 1 year ago.
Category: Legal
Expert:  Roger replied 1 year ago.

Hi - my name is ***** ***** I'll be glad to assist.

Does your contract require this of you? Also, are you working on a flat fee amount or based on time and materials?

Customer: replied 1 year ago.
No and Flat fee (agreed bid amount) It is a Federal Project and the GC is concerned about us being able to finish and is concerned about The Miller Act however, the concerns are unfounded.
Customer: replied 1 year ago.
We have been on over 60 projects of similar scope and this has never been required.
Expert:  Roger replied 1 year ago.

Well, if they were concerned about this, they should have required a payment and/or performance bond from you.......per the Miller Act.

Expert:  Roger replied 1 year ago.

The bot***** *****ne is that if this was not in your contract and you were given the job for a flat fee amount, then I don't see how you could be "required" to produce this. However, the fight may not be worth the result if it wouldn't be an extreme amount of trouble to just provide what they're asking to establish that there are no materialmen/suppliers out there that may file a claim.

Customer: replied 1 year ago.
they did. We are fully bonded yet they are still requiring this. They have paid at least 4 months and then suddenly they are requiring this now.
Expert:  Roger replied 1 year ago.

If you've got a bond, I don't understand what their problem is......if a claim is made, the bond will cover down. Again, I don't think they have a legal right to require this of you......but it just boils down on whether you want to fight or whether you will just agree to get this done and get your money.

IF they think they have a legal right to require this, you may want to ask them to provide you legal authority for their request.

Customer: replied 1 year ago.
I concur, however, it is delaying payment as we are adding additional admin. time and effort to sort through and isolate invoices for just this project. My bot***** *****ne question is, can we kindly refuse on the basis that we are bonded and we believe this to be unreasonable and unnecessary meddling and can they legally hold our money.
Expert:  Roger replied 1 year ago.

Yes, you can refuse and claim that it's not require under your contract and that you have bonds in place.......BUT that doesn't meant the GC will concur with you.

Expert:  Roger replied 1 year ago.

That's where you'll get to my statement above......if the GC withholds payment, you'll have to make a claim on the bond yourself for payment, and end up fighting......further delaying payment to you, or you'll just have to give in and move on. Thus, the real issue is whether you want to dig in your heels and fight or just give them what they're wanting in order get paid.