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  • Back Charge Letter To Subcontractor 2020

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A back charge occurs when a general contractor or project owner identifies certain deficiencies in the work by or costly damage attributable to a subcontractor or supplier. The costliness of the error or neglect is calculated to a dollar amount and then subtracted from payment to the party at fault.

A back charge is money that's held back or charged to a contractor on a construction project after the fact. It's common for “back charges” to be the source of disputes, delays, and problems on construction jobs.

In some instances, money flows in the opposite direction from you back to the contractor you are working for. This is known as a construction back charge (sometimes spelled “backcharge”) and occurs when you owe money back to the contractor you are working for.

A back charge, in the context of this article, is money withheld by a contractor which relates to the payment to a subcontractor to cover services claimed to have been performed, or costs incurred by the contractor relating to the subcontractor's work.

Chargebacks can be used to make cost adjustments in project work. In these instances it would change the amount of money paid to subcontractors or suppliers. These chargebacks are typically the result of errors or damages. Chargebacks can be used to settle damage penalties, damage adjustments or bid changes.

Back charges can be incurred in a few different ways: defective work/materials (cost to properly complete/replace) damage to a jobsite (cost of repair) cleanup (costs incurred to maintain worker safety or compliance with OSHA)

A back charge is a billing made to collect an expense incurred in a previous billing period. It can be due to lack of payment by the recipient of services or goods, an adjustment due to an error, or to collect an expense that was not billable until a later period due to timing issues.

A back charge occurs when a general contractor or project owner identifies certain deficiencies in the work by or costly damage attributable to a subcontractor or supplier. The costliness of the error or neglect is calculated to a dollar amount and then subtracted from payment to the party at fault.

Dear [insert name], It has come to our attention your performance on [Insert project name] has deteriorated to a level that is no longer acceptable nor tolerable. This poor performance issue has resulted in creating many other problems on the project including [Insert important issue e.g delays].

For example, let's say that a vendor sells a gas station sells $1,200 worth of supplies each month. If the store fails to pay for one month of their supplies, the vendor will send a new invoice for $2,400: the fee for the forgotten month and the next month.

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© Copyright 1997-2025
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Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
Industries
Forms in Spanish
Localized Forms
State-specific Forms
Forms Kit
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232