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.
Related terms
- SubcontractorA contractor who carries out part of the works for the main contractor.
- Payment application (IPC)A periodic payment request based on approved progress and executed quantities.
- NCR (non-conformance report)A report recording work or material not meeting the specification, with root cause and corrective action.
- Site housekeepingKeeping the site tidy and clear of waste and obstructions.
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