CABL Forum - Re: Unauthorized Deductions from Pay

What you heard is true to the extent that such a stipulation was included in the subcontract agreement that you signed.

If you went to work for a contractor, friend, or your Uncle Mortie, you should have read and signed a written agreement.

"THINK BEFORE YOU INK" -- is one of the first rules of business.

This is a typical example of what you may find in a standard Subcontract Agreement, pertaining to Backcharge. Thus, you know what is expected, and what the consequences are.

SC5:45

BACKCHARGES

If, under the provisions of this Subcontract, SUBCONTRACTOR is notified by CONTRACTOR to correct defective or nonconforming Work, and SUBCONTRACTOR states or by its actions indicates that it is unable or unwilling to proceed with corrective action in a reasonable time, CONTRACTOR may, upon written notice, proceed to accomplish the redesign, repair, rework, or replacement of nonconforming Work by the most expeditious means available and backcharge SUBCONTRACTOR for the costs incurred.

Furthermore, if CONTRACTOR agrees to or is required to perform Work for SUBCONTRACTOR, such as cleanup, off-loading,
or completion of incomplete Work, CONTRACTOR may, upon written notice, perform such Work by the most expeditious means available and backcharge SUBCONTRACTOR for the costs incurred.

The cost of backcharge Work shall include:

(a) Incurred labor costs including all payroll additives,

(b) Incurred net delivered material costs,

(c) Incurred lower-tier supplier and subcontractor costs directly related to performing the corrective actions,

(d) Equipment and tool rentals at prevailing rates in the Jobsite area, and

(e) A factor of sixty percent (60%) applied to the total of Items (a) through (d) for CONTRACTOR'S overhead, supervision and administrative costs.

The backcharge notice will request SUBCONTRACTOR'S approval for CONTRACTOR to proceed with the required Work. However, failure of SUBCONTRACTOR to grant such approval shall not impair
CONTRACTOR'S right to proceed with Work under this or any other provision of this Subcontract.

CONTRACTOR shall separately invoice or deduct from payments otherwise due to SUBCONTRACTOR the costs as provided herein.

CONTRACTOR'S right to backcharge is in addition to any and all other rights and remedies provided in this Subcontract or by law. The performance of backcharge Work by CONTRACTOR shall not relieve SUBCONTRACTOR of any of its responsibilities under this Subcontract including but not limited to express orimplied warranties, specified standards for quality, contractual liabilities and indemnification, and the Subcontract Schedule.
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Simple.....To the point.....and "BINDING"
First time, shame on me.........Second time, "Think Before You Ink."

Good Luck, All

INSTALLATION

CONSTRUCTION / TECH

OFFICE / OTHER

Re: Unauthorized Deductions from Pay