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Owner withholding final payment from general contractor as he is not happy with roof which is under warranty.

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I owe my sub contractors and vendors money which is to be paid with money from my final invoice. The owner of the house is not happy with the roof, which is under warranty. I do not believe the owner has a justified claim, but he says he won't pay until he is 'satisfied', and is threatening to have his roof removed and replaced. Since the roof is under warranty, and I have paid for the materials and installation of the roof, and the remainder of the money owed is for work other than the roof, can the owner withhold payment? I am in a real bind as I can't pay my subs without payment from the owner which puts me in a bad position with them.

Attorney Answer

1
Michael Daudt ·
The answer to this is going to boil down to whether the roof was built in accordance with the terms of the contract. The fact that the roof is under warranty is not relevant--the owner is entitled to get what he paid for, and if a judge agrees that he didn't get the roof that he paid for, he is going to be allowed to deduct from what is owed, even if the amounts remaining are for different parts of the house. You should get a lawyer experienced in construction law to review your contract and the issues that the owner is complaining about.
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