Legal Question in Business Law in Virginia

business law

if your co. is a subcractor under a sub contractor can that sub hold 10% retainage on you when that sub your working under is held 10%


Asked on 12/17/08, 6:16 pm

1 Answer from Attorneys

Jonathon Moseley Moseley & Associates Law Firm

Re: business law

They can do whatever is agreed to in your contract with them (whether written or verbal).

If you did not agree to this, then, no, they cannot. Of course the problem people face is can you afford to lose their business if you object?

But if you have completed the work for which you seek payment (to that extent) and you have not agreed to any such arrangement, then they cannot change the deal after the fact.

Now, what they might argue (and perhaps successfully) is that this is the NORMAL PRACTICE in your industry.

In other words, they would argue that because this is standard practice, your contract with them for your work was assumed to include the standard practices in the industry. That is, it is IMPLIED in your contract because it is normal and routine practice.

And they could win with this argument, in court. But they would have the burden of proving that this is the standard practice and not just some of the time, but almost universal, well-known, etc., etc.

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Answered on 12/17/08, 10:12 pm


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