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  1. #1
    Join Date
    Oct 2014
    Posts
    1

    Default Payment Dispute Between Contractor and Subcontractors

    I have recently completed a very impressive landscape project from start to finish. My company sub contracted to a contractor who the main contractor appointed. The main contractor was awarded the contract by capita and all funds were administered by the same. My contract was a back to back agreement 50 a 50 profit split with the contractor i worked for, hence everything on the job was billed at cost. The contractor I worked in partnership with on this job billed the project to the main contractor at cost plus 20% margin. Therefore on a £150,000 project cost, £30,000 would be added which would show the total contract to be £180,000 and both the contractor I worked for and myself would take wages plus £15,000 profit in a perfect world. The main contractor would then mark up the invoices we submitted and he would get paid from Capita and in return on a back to back agreement the main contractor should then pay us. In short this worked for approximately 3 months but then we started getting underpaid. The main contractor stated they would make the money up etc but nothing has happened. The main contractor has used our money to pay there vat bill. The main contractor has offered to pay £1,000 per week but disputes the invoice amounts only wanting to now agree to £14,000 they owe and this has been going on for months. We have had only £1,000 now in 8 weeks. As the contractor in this case who I work for subcontracting interfaces with the main contractor. I.e. He invoices them and administers the job, he no longer wishes to fight this main contractor, but I do. I was the project manager for the customer who built the whole job and I cannot afford to go without. My question is therefore, as a subcontractor to the the contractor to the main contractor even though we were partners and have shared all invoice profit, can I bring a case against the main contractor for non payment? And if so, is there any case law I can read up on. It is my belief that the main contractor has committed many acts of fraud especially as this was a goverment funded project and therefore the invoices submitted into Capita would state what the funds were for and who they were for and the main contractor then has used these same funds for something completely different. I trust this all makes sense, and look forward to reading the responses from those far more knowledgable than me. Thanking you all in advance. Brindle

  2. #2
    Join Date
    Mar 2013
    Posts
    18,340

    Default Re: I Sub Contracted to a Contractor Who Contracted to the Main Contractor

    Your use of the English Pound sign instead of dollar indicates you are not in the US.

    This is a US site.

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