Contractor not paying up for works done
Discussion
On behalf of a friend this one. Friend who I shall refer to as subcontractor, is asked by the contractor to attend address and repair pipework in a premises. Boiler had been messed with by contractor employees (who were untrained) prior to arrival and drained out but left running which may have caused damage to it.
Pipework is then repaired by the subcontractor, boiler refilled and water temps all good.
Some time later, the customer fails to pay contractor full amount citing water temperature problems and thus contractor deducts same amount from subcontractor for works.
What's the legal position on this? Should the contractor pay the subby and then take it up with the customer?
Edit to add that this was a verbal agreement, long-standing relationship with contractor who requests by phone to do x y z where subby then invoices contractor for works done. Both are fairly small family businesses but the contractor has recently had a change of management and they are outstanding a number of invoices for several jobs done from several months ago running into several thousands of pounds.
Pipework is then repaired by the subcontractor, boiler refilled and water temps all good.
Some time later, the customer fails to pay contractor full amount citing water temperature problems and thus contractor deducts same amount from subcontractor for works.
What's the legal position on this? Should the contractor pay the subby and then take it up with the customer?
Edit to add that this was a verbal agreement, long-standing relationship with contractor who requests by phone to do x y z where subby then invoices contractor for works done. Both are fairly small family businesses but the contractor has recently had a change of management and they are outstanding a number of invoices for several jobs done from several months ago running into several thousands of pounds.
Edited by Chicken Chaser on Sunday 22 January 15:07
Contractor is basically saying that Subby didnt do job properly therefore theyre deducting the same amount of money, despite it working on leaving the job.
Subby in this instance, isnt wet behind the ears. 30+ years of experience, and previously an excellent relationship with contractor. Since change of hands however, contractor hasnt paid for any outstanding invoices. Theyve tried to suggest that there was an issue with HMRC (despite there not being one) and now they come up with this, even though the job was months ago.
Subby in this instance, isnt wet behind the ears. 30+ years of experience, and previously an excellent relationship with contractor. Since change of hands however, contractor hasnt paid for any outstanding invoices. Theyve tried to suggest that there was an issue with HMRC (despite there not being one) and now they come up with this, even though the job was months ago.
roofer said:
Sounds like someone who thinks he's clever has taken over and is using subbies as a loan company. Same trick the big boys do.
Exactly this I believe. Subby has no intention to use contractor for work again, and wants to finalise outstanding works and cut clean. He doesn't however, want contractor to be able to wriggle out of payment by claiming that the works were insufficient more than 3 months after that job was done. Its the first he's heard of it. I'm just asking advice on correspondence so that he can rightly claim if entitled to. My understanding is that if the contractor had issues with the payment, then he should have issued some kind of notice early on to suggest this? He's willing to go to the small claims but initially would like to test whether this contractor is simply trying to pull one (he's probably not alone on not being paid by the sounds of things).
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