Subcontractor
Hi everyone, and happy Sunday
I need advice, one of my customers gave money (2K) to my subcontractor to buy lumber materials thinking that we are the same company, this sub didn’t refund the money nor provide the materials nor answer the phone or text. I told the customer you shouldn’t pay my worker or my sub since I did the contract and we did the scope according to the proposal, now the Thumbtack ask me to refund this 2k to the customer otherwise they will remove my account. Please advice
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Hi @Mustafa I'm tagging in some of our home construction/home maintenance pros to see if they might have any advice for you!
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DEPENDS ON THE LAWS IN YOUR JURISDICTION.
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To elaborate, where I work any payments to subcontractors are invalid, and therefore do not count as payment to a contractor. Therefore you have recourse against your customer, who still owes you money. Also, whomever took payment obviously committed some sort of fraud, and you may want to report them to authorities. Best of luck with Thumbtack, they are unfortunately able to do what they want.
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This case sounds very complex and difficult at the same time. Moving forward, I highly suggest you to use official contracts (if you’re not already using) and ensure all scopes are fully explained- specially payments section. Sub-contractors should NEVER accept or ask for any money on any form. In this case I would consider this subcontractor as fraud- and it should be reported to local authorities.
good luck settling this one up!
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Hey Mustafa,
1- Ensure that the customer paid your sub. Ask them to prove their payment receipt. You have no problem even in Thumbtack court if they don't have any evidence.
2- If your customer showed their approval, Use it against your sub in court.
3- Review your insurance. It may be paying you something for your sub-contractor issue.
4- purchase the material out of your pocket and install them for your customer. You can charge them at least %20 higher prices to provide the material; your profit on this job will also cover your loss.
5- Talk with a lawyer to ensure your contract's content provides enough protection against the subcontractors' issues.
6-Update your work order and inform the customer about your term and condition.
Good Luck
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