Charging another contractor for costs you incurred because of something they failed to do or did incorrectly.
A backcharge is a cost charged by one contractor to another for correcting defective work, completing work that was the other party's responsibility, or cleaning up after another contractor. General contractors backcharge subcontractors, and owners backcharge general contractors. Backcharges must be documented with proper notice and supporting cost records.
The GC issued a $12,000 backcharge to the drywall subcontractor for the cost of cleaning up drywall debris they left on three floors.
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