QUESTION
Is the general contractor legally allowed to place overhead and profit on any taxes?
Asked on Jun 09th, 2013 on Criminal Law - South Carolina
More details to this question:
My mother hired a restoration company to fix her house after a fire. She had it set up that all the money from the insurance company for any building expense went though the restoration company. Now with that said, my mother had to hired a contractor for the cabinets in the house since the restoration company did not have anyone that could do custom cabinetry. The insurance company cut the restoration company a check for our contractor and then they cut a check for my mother to pay our contractor for the cabinetry work. When the fine price came in, the restoration contractor placed a overhead and profit markup on the cabinetry contractor saying that they were the general contractor and have the right to place overhead and profit on their contractor. Is this legal?
5 ANSWERS
Michael J. Breczinski
This depends on any contract between the general contractor and the cabinetry contractor, but that should be between them and not for your mother to pay.
Answered on Jun 13th, 2013 at 3:55 PM
Ronald A. Steinberg
If you got a quote from the company before they did the work, then they must fulfill the contract at the quoted price. If not, get a lawyer.
Answered on Jun 12th, 2013 at 11:16 AM
Personal Injury Attorney serving Charlotte, NC
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Paul Whitfield and Associates P.A.
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Likely. You should read the contract documents. They should have any such ideas spelled out
Answered on Jun 11th, 2013 at 11:40 AM
Thomas Edward Gates
No it is not legal. You stated your mother, not the contractor, hired the firm to handle the cabinets. There is not contract between the general contractor and the cabinet contract. Further, there is no overhead associated with the cabinet contractor.
Answered on Jun 11th, 2013 at 11:40 AM
Criminal Defense Attorney serving Anderson, SC
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The David F. Stoddard Law Firm
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Yes, if that is stated in your agreement with the general contractor. I would have to read the contract. It is possible, since the general contractor did not hire the cabinet person that the general contractor would not be entitled to the markup. But I would have to read your agreement to be sure.
Answered on Jun 11th, 2013 at 9:26 AM