Industry Guide
Subcontractor Back-Charges: How to Document, Apply, and Collect Them
A back-charge is a cost the GC incurs because of a subcontractor's failure — damaged work, missed scope, cleanup left behind — that gets charged back to the sub. Done right, it's a straightforward contract remedy. Done wrong, it becomes a dispute that eats up retention and delays closeout. The difference is documentation.
Marcus Reyes7 min read