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2nd Post Out Of Desperation

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S

SallyH

Guest
Subcontractor Mess - Please help!!!

What is the name of your state?What is the name of your state? CT

Well, I didn't know which area to put this, this seemed the best place. My company (we build high end theatre rooms) hired a subcontractor(We'll call him A) to do the Fibre Optic Lighting in this HUGE job we have going. The customer having the room done gave us a materials retainer of 150,000.00. A requested 37, 295.00 for materials total, with an invoice written by him for each of the 6 things he needed.

Now, 3 months later, we aren't seeing much done on the job. I had a meeting with A this morning in which he said it was funny that I was asking him for reciepts, that as a subcontractor he wasn't obliged to give them to me. He also said that he marked the materials up 30%, with 10% profit for us. This markup was never discussed, and I need to know what to do. I am very confused and need some help. We're a small company and this is the first huge project we've taken on.

1. Is A required to show proof that he purchased the materials?
2. Is it standard practice for sub-contractors to mark up materials they need? I don't understand this, as he is billing for labor as well.
3. What are my legal options at this point?
 
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willingtocope

Guest
Get a lawyer..

If "A" did indeed present you with an invoice for the materials he needed, then that's probably all he needs to provide you with. I assume you've paid him already...right? What he paid for them, is NOT something he needs to tell you. Marking up materials is a standard procedure, when the sub provides the materials. (I'm not quite sure what he meant by 30% for him, 10% for you). Labor is a separate billable item.

It seems like your real problem is getting him to do the work. This is always the problem with subs...they control their own schedules

You may need to get a lawyer involved...but, be prepared to have someone else do the work...
 

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