General Contractor Holding Payment From One Contract To Cover Another?

[diamondpoint]

What is the name of your state (only U.S. law)? New York

I am a sub-contractor with two commercial contracts with the same general contractor. The first job has been completed for about one year and retention has not been paid. The general contractor says he is back charging me on the second contract and is holding retention on the first job "to make sure he is covered".

My understanding is that these are separate contracts and he is not entitled to link the two in this way. Is this correct and how to get paid without having to file a lien or take them to court?

 

[justalayman]

This appears to be a contractual matter. Without reading every sort of agreement between the two of you it is impossible to say of he could link the two together such as he has.

 

[diamondpoint]

This appears to be a contractual matter. Without reading every sort of agreement between the two of you it is impossible to say of he could link the two together such as he has.

These are standard AIA contracts. There is absolutely no reference to linking multiple contracts.

 

[quincy]

These are standard AIA contracts. There is absolutely no reference to linking multiple contracts.

As justalayman said, there is a need to read the contracts in their entirety to determine if the general contractor can "link" the two contracts, refraining from paying you on the one until the terms of the other are satisfied.

Without seeing the contracts or knowing anything more than what you have posted here, I would say that the contractor cannot withhold what he owes you on the first contract, if the work was completed according to terms. You will need to have the contracts and all facts reviewed personally by a professional in your area, however, to determine for sure if the contractor can legally hold payment on the first contract hostage until you complete the terms of the second.

If you do not want to compel payment by taking the general contractor to court or by filing a lien, however, I am not sure what you want. It appears that if you fulfill the terms of contract number two, you will be paid for the work you agreed to do under both contracts.