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In construction, Backcharge refers to the process of charging the costs of extra work, rework, or damages back to the party responsible for the problem or delay. It is a mechanism used to allocate financial responsibility for issues that occur during the course of a construction project.
What is an example of a back charge in construction?
Example of back charges As an example, a subcontractor agrees to perform work for a GC at a price of $100,000. At any point whether its during or after work the GC and the project owner contend that $20,000 of the subs work is incorrect or incomplete. This means that the sub wont receive their full $100,000.
How to issue a delay notice?
The delay notice should be well-documented, with all relevant evidence and supporting information to substantiate the claim of delay. A typical delay notice might include: A detailed explanation of the cause and nature of the delay. The date the delay began and the estimated duration of the delay.
How do I write a delay letter to a contractor?
Dear [Recipients Name], We are writing to formally notify you of a delay affecting the above-referenced project due to severe weather conditions. On [specific dates], heavy rainfall and extreme winds occurred, making it unsafe to proceed with the scheduled construction activities.
Why would a contractor back charge a subcontractor?
A back charge is a tool the general contractor can use to recoup the unexpected costs of having to go back and fix the defective work to come out with a satisfactory finished project. Contractors may simply withhold some of the payment due to a contractor to cover these costs.
back charge letter sample
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Dear First Name: In reviewing the progress to date for the referenced project, we have noted that we have been prevented from performing our work as scheduled because Reason for Delay. You will note that these actions were unaticipated and beyond our control.
How to write a letter for delay in work?
How to write an apology letter for being late to work Start with an apology. The very first sentence in your apology letter should include your actual apology. Show youre aware of the consequences. Take responsibility. Explain the cause. Assure your manager it wont happen again. Show regret. Explain how youll correct it.
How do I write a warning letter to a contractor for delay in work?
I am writing to express my deep concern regarding the ongoing delays in the construction project that you are currently handling. Despite the clear timeline and agreed-upon deadlines, the project has fallen significantly behind schedule, causing considerable inconvenience and financial loss to our organization.
construction back charge form template
Management of Construction Manual
The Consultant must obtain prior approval from the University before such a letter is transmitted to the Contractor (see sample back charge letter).
All materials to be used in the construction of this project shall be tested and certified by the ENGINEER as meeting the requirements of the approved plans and.
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