Is a subcontractor legally allowed to provide the invoice to the contractor to the customer?

[quincy]

Here is a link to the 2011 decision by the Tennessee Supreme Court in Federal Insurance Co. v. Winters that addresses contractor/subcontractor liability:

https://caselaw.findlaw.com/tn-supreme-court/1583691.html

The Tennessee Supreme Court held that the main contractor is liable for performance under the main contract with a customer, including work that is delegated to subcontractors (absent any agreement with the customer to the contrary).

If this is not a work “performance” issue but rather a dispute over the costs being charged, your employer and the customer would still go to/through the contractor.

 

[Taxing Matters]

And since your employer billed the contractor, why isn't a copy from the contractor sufficient to meet what the customer wants? Surely the contractor should be willing to do that to back their bill to the customer if this is a billing dispute between them. I'd generally not want to get in the middle of their pay dispute unless required to do so. It's not your company's problem, and the less said by your company to the customer, the better.

 

[quincy]

And since your employer billed the contractor, why isn't a copy from the contractor sufficient to meet what the customer wants? Surely the contractor should be willing to do that to back their bill to the customer if this is a billing dispute between them. I'd generally not want to get in the middle of their pay dispute unless required to do so. It's not your company's problem, and the less said by your company to the customer, the better.

I am thinking that the contractor might have charged the customer more for the work than the customer thought reasonable - and now perhaps the customer wants to see the subcontractor’s own original invoice to compare and contrast to the bill submitted them by the contractor. Just a guess.

If it has to do with a problem with the work that was done, however, that falls on the contractor, unless the customer released the contractor from the original contract and signed a new contract with the subcontractor, which doesn’t sound like the situation here.

 

[LdiJ]

I am thinking that the contractor might have charged the customer more for the work than the customer thought reasonable - and now perhaps the customer wants to see the subcontractor’s own original invoice to compare and contrast to the bill submitted them by the contractor. Just a guess.

If it has to do with a problem with the work that was done, however, that falls on the contractor, unless the customer released the contractor from the original contract and signed a new contract with the subcontractor, which doesn’t sound like the situation here.

It is probably something along the first part of your post. It wouldn't surprise me if the customer didn't believe that the contractor had the right to a markup.

 

[adjusterjack]

It is probably something along the first part of your post. It wouldn't surprise me if the customer didn't believe that the contractor had the right to a markup.

It's called "overhead and profit." Contractors add it to their costs. Often 20% or 25%. Insurance companies routinely allow it in property claims.

 

[LdiJ]

It's called "overhead and profit." Contractors add it to their costs. Often 20% or 25%. Insurance companies routinely allow it in property claims.

Yes, I know that. Some customers don't get that.

 

[quincy]

It is probably something along the first part of your post. It wouldn't surprise me if the customer didn't believe that the contractor had the right to a markup.

Whatever the case - and it sounds to me more like a billing dispute than a grievance over the work performed - the subcontractor should be best off referring any customer requests to the contractor, unless compelled by a subpoena to respond directly to the customer.

And, in the meantime, the subcontractor might want to gather proofs of costs and labor to support his own billing charges.

 

[zddoodah]

The person I work for was sub contracted to complete a job.

So....there's an owner...and a contractor...and a subcontractor (the person for whom you work as an employee). Right? What sort of job?

There is an invoice that we sent to the contractor that the customer is now requesting we send them because they are seeking legal action against them (I am not sure what for).

Using the same pronoun to refer to multiple persons/entities does nothing but create confusion. First of all, when you say that "we" sent an invoice to the contractor, I assume "we" refers to you and your employer. Correct? Second, I think what you're saying is that your employer sent an invoice to the contractor, and the owner/customer is asking your employer for a copy of the invoice because the owner/customer intends to sue the contractor. Correct?

Are we legally allowed to provide that to the customer or could the contractor counter sue us for giving out that information?

Unless Tennessee has a completely bizarro law, or unless your employer's subcontract with the contractor has a very unusual provision, there is no legal restriction on your employer providing the invoice to the owner/customer.

I’m the administrative assistant for the company. . . . He was concerned that sending the invoice to the customer would put him at risk legally so I said I would look into it

"He" being your boss? He should be seeking legal advice ONLY from a lawyer representing the company. Basing business decisions on information from anonymous strangers on the internet (most of whom are not lawyers or in Tennessee) is a HORRIBLE business practice. And, of course, there are business considerations involved here that we can't begin to address intelligently.

 

[quincy]

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