Default and deduction review
supplement
The GC may be able to hire someone else, charge your shop, and deduct the amount from your invoice.
Why it matters
Backcharges can turn into a catch-all bucket for cleanup, protection, acceleration, damage, or coordination problems caused by multiple trades.
Contractor may supplement Subcontractor's work and deduct all related costs from amounts owed to Subcontractor.
Contractor may backcharge only after written notice, a reasonable opportunity to cure, and documentation of reasonable direct costs caused by Subcontractor.
Can we add written notice, a reasonable cure period, and backup documentation before any backcharge is deducted from our payment?
Ask counsel to review if backcharges can hit unrelated payments, include markup or attorneys' fees, or skip notice and cure.
Next step
Check the actual subcontract language.
Use the phrase checker or upload the subcontract to see whether this wording appears with other risk terms.