What ca I do if I’m a plumbing contractor and a general contractor won’t release what they owe us?

UPDATED: Oct 1, 2022

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What ca I do if I’m a plumbing contractor and a general contractor won’t release what they owe us?

A house we did for the builder had a leak that caused some damage and our insurer was informed. However, they saw lot of red flags on this claim, as did I. The builder held our money from other jobs because of damages in amount of $85,000. His insurance company paid out for him and now it’s a battle of insurance companies. Can they still legally be able to still hold our money owed to us?

Asked on November 29, 2018 under Business Law, Colorado


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

The GC's obligation to pay you for the work you did is separate and distinct from any issues they have regarding being paid, damages claims, etc. They cannot legally withhold or refuse to pay money for work you did for them and which has been cometeted successfully (such as other jobs). If they won't pay, you can sue them for "breach of contract" (for violating their obligation to it you for the work you did for them) for the money.

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