If a general contractor paid a subcontractor for labor and materials but the sub does not pay the supplier, can the general contractor and the owner be held liable?

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If a general contractor paid a subcontractor for labor and materials but the sub does not pay the supplier, can the general contractor and the owner be held liable?

Asked on April 13, 2013 under Business Law, Kansas

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

No, not unless they in some fashion guaranteed the payments to the supplier; otherwise, the supplier can only seek recourse against thhe subcontractor, who is the one who breached the agreement (whether written or oral) to pay him for the supplies.


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