However, there is a very significant additional relief for the applicant if the contractor or a subcontractor who is higher up on the payment manager did not pay if that contractor received a payment from the owner or a higher person on the payment administrator who had to pay for the work performed. Lawyers` fees, interest and penalties may be assessed for the benefit of the applicant and the licensee may encounter serious problems with the licensing body. Section 1775 of the Labour Code provides that contracts `concluded between [a] contractor and [a] subcontractor for the performance of works on [a] public works project shall contain a copy of that section and of sections 1771, 1776, 1777.5, 1813 and 1815`. Even if you pay your contractor in full, subcontractors, suppliers and unpaid workers who have contributed to the improvement of your property can register mechanical instructions and sue you to close the right of pledge. If a court finds that the right of pledge is valid, you may be required to pay twice or have your house sold to a clerk to pay the pledge fee. Instructions can also have an impact on your credit. The Contractor shall pay to its subcontractors, within ten days of receipt of each advance payment, the amounts which are granted to the Contractor to the extent of the interest of each subcontractor as a result of the work carried out by its subcontractors. Payments to subcontractors shall be based on estimates in accordance with Article 10261. Any breach of this section constitutes grounds for disciplinary action and is subject to the Licensee a penalty to be paid to the Subcontractor, up to a maximum of 2% of the monthly amount due for each month in which payment is not made. In any action for the recovery of funds wrongly withheld, the winning party is entitled to his or her attorneys` fees and expenses.
The penalties permitted under this Section shall be distinct from all other civil, administrative or criminal remedies. BE CAREFUL. Notice may be sent up to 20 days after the start of the subcontractor`s work or the supplier`s supply of equipment. This can be a big problem if you pay your contractor before you receive the notices. Many DIY contracts use a reversal that can give rise to big misunderstandings – the «allocation». Used sparingly, it can be a good way to start a project, even if a definitive selection of products has not been defined (for example.B. ceramic appliances or tiles). I found AdCs containing 2/3 of the contract value in items labeled as certificates, which are then reviewed as soon as the actual costs have been determined. The effect of this practice is that an agreement on the «fixed sum» is subject to huge increases (adjustments almost never go the other way)! The El Tejon Unified School District commissioned Patscheck to build a gymnasium and a football stadium (Prime Contract).
Patscheck used various subcontractors, including Raul Gonzales (Gonzales). Gonzales, who was to supply the concrete and structural steel for the project, apparently broke the subcontract and was overpaid, causing Patscheck financial problems in the project. A breach of Article 7108(5) constitutes a reason for disciplinary action. A contractor who has been paid for a project and refuses to pay a subcontractor must pay as a fine 2 per cent of the amount due per month in which payment is not made. . . .