ABSTRACT

The remedies of the contractor vary according to the cause, if he is dissatisfied with matters relating to a certificate. In the early stages of a contract where there is a substantial amount due for variations, or especially if sums are due for loss and expense, the possibility of underinclusion of a provisional allowance in certificates is high. There are two basic situations in which the contractor may deduct from subcontract payments: where he himself has suffered a corresponding deduction from a certified amount and where he has some contra-account on which to recover. Over late payment by the employer, the provisions are clear: the contractor may determine his employment under the contract, subject to observing the procedure over notices. The most common risk is that of the contractor becoming insolvent after himself being paid and before paying a subcontractor.