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Back-charge

الخصم على مقاول الباطن

Deducting the cost of work the main contractor did on a subcontractor's behalf.

Category: Contracts & management

Prepared by Eng. Ahmed Fathy, Projects Manager ·

Definition

A back-charge recovers from a subcontractor the cost of work or damage he caused or failed to do, such as cleaning, repairing damage or completing late work, deducted from his payments after notice.

Why it matters on a project

It protects the main contractor from carrying others' failures, but needs a basis in the subcontract, records and prior notice or it becomes a dispute.

Measurement and pricing

Actual recorded cost of labour, materials and plant, with an admin percentage if the contract provides.

Common mistake

Deducting sums from a subcontractor's payment without notice before the work and without records, so he rejects and claims them.

Frequently asked questions

Must the subcontractor be notified before a back-charge?

Yes, preferably with a chance to fix the work himself before it is done at his cost.

What records are needed?

The written notice, photos, labour and material records, and invoices.

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