QUESTION
Can a contractor refuse to pay a sub-Contractor for work performed , But not completed due to lack of material which Contractor was to provide?
Asked on Jun 07th, 2017 on Contracts - Colorado
More details to this question:
A contractor received deposit for material from a homeowner. Contractor purchased only partial material for sub-contractor to perform work. Homeowner arrives, project is not completed as specified and within contract agreement time frame with contractor. Homeowner fires Contractor who turned and fired sub. And is refusing payment. Contractor sent a self typed letter to sub refusing payment for work performed
1 ANSWER
If the contractor caused the sub to be unable to perform, and the sub otherwise performed its obligations under the contract, the contractor has breached its contract with the sub and is liable for the damages the sub incurred due to the breach, i.e. the profits it lost on the contract (less any profits it made up if it able to get another job now that it is free). The problem is, however, that it sounds as if the contractor may be broke, and unable to pay.
Answered on Jun 07th, 2017 at 12:38 PM