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Backcharge

A backcharge is a cost that one party deducts from money it owes another party. It covers damage, cleanup or work the other party left undone.

A general contractor usually issues a backcharge against a subcontractor. The subcontract states when and how it can happen.

Example: a painter leaves overspray on finished flooring. The general contractor pays the flooring installer to fix it and backcharges the painter.

Estimators can prevent some backcharges at bid time. State clearly in your proposal what you include and exclude, such as cleanup, protection, hoisting and patching. Read the subcontract terms about notice. Ask for written notice and a chance to fix the problem before any backcharge.

See also

Run a real bid packet through it.