General Liability Insurance = Subcontractors with no coverag

copelandcircle

Is it legal to withhold a percentage from subcontractors checks in the state of South Carolina? How much would you withhold from a roofer?

tcope · Posted: Thu Sep 11, 2008 3:54 pm Post subject:

I certainly cannot give your legal advise, especially something so technical... but if I put this post together with your other post I think you hired a sub w/o GL coverage? What does your contract with the sub state? Does it state he will carry GL coverage and name you as an additional insured (it should)? You should not even allow him to work without providing a AI endorsement with your name on it. If he started work and won't provide the insurance documents, I'd escort him off the property and pay him only for the work he has done.

Does the contract you have with the sub state if he does not provide proof of insurance that you can withhold the cost to provide insurance for him? If you agree to pay this sub for work done... and the work is done, you need to pay him the amount owed unless there is something in writing stating otherwise.

Ontario Broker · Posted: Mon Sep 22, 2008 7:51 pm Post subject:

In most trades where holdbacks are an accepted/legal practice the standard holdback is 10%.

General Liability Insurance = Subcontractors with no coverag

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