Expert Advice When You Need It Most

Profit and Overhead Payments for Contractors.

Asked about 3 years ago - San Diego, CA

Our house was hit by a drunk driver. We hired a general contractor for the restoration but after the initial work we found their work to be shoddy. We paid them for the work they did and added the 20% profit and overhead that was allowed in the insurance settlement. They are now coming back to us saying that we owe them the profit and overhead for the work they didn't do. Is this legal? they have already sic'd their attorneys on us and are threatening court. What can we do?

Additional information
They say in their contract that they do not refund P&O. But how can it be a refund if we haven't paid it yet?

Flag

Save

Share with:

Attorney answers (1)

Douglas Anthony Dube

Reputation Level 10

Answered about 3 years ago. Business Attorney in San Diego, CA.

Flag

It doesn't sound right to me that you would be liable to pay a contractor for work not done. But your contract is the primary factor in determining your rights, so that would need to be reviewed to respond to your question. Please feel free to contact me if you'd like a free initial consultation, including a review of your contract.

DISCLAIMER: The information in and this communication are not intended to create an attorney-client relationship between you and me or my law firm. The information in this communication is intended for general informational purposes only and should be used only as a starting point for addressing your legal issues. It is not a substitute for an in-person or telephone consultation with an attorney licensed to practice in your jurisdiction about your specific legal issue, and you should not rely upon the information in this communication. You understand that this communication is not confidential and is not subject to attorney-client privilege.

Mark as good answer

Add comment