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Joshua
Joshua, Lawyer
Category: Law
Satisfied Customers: 25494
Experience:  LL.B (Hons), Higher Prof. Dip. Law & Practice
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We have been awarded a contract through an Architect to do

Customer Question

We have been awarded a contract through an Architect to do work for a clients house and the order has come through the main contractor. The figures were all agreed and the builder appointed. The builder is now demanding that we give them 2.5% from our costs or they will go elsewhere for the products. Whilst I would understand if we had added 2.5% MCD at the start, surely they are demanding money unreasonably?
Submitted: 3 years ago.
Category: Law
Expert:  Joshua replied 3 years ago.

Joshua :

Thanks for your question. Please kindly RATE my answer when you are satisfied

Joshua :

May I clarify that I understand this correctly: There is a client who has appointed a contract to a main contractor who has in turn subcontracted some or all of the contract to you and you have contracted with a builder to carry out some or all of the work and to the contract awarded to you by the main contractor. is this correct please?

JACUSTOMER-jx1ioi7b- :

That is correct. We are mentioned in the main contract as the supplier and now the builder is requesting that we pay him 5% of our total or he will award our business elsewhere

Joshua :

I am very sorry for the delay in reverting to you. For some reason the question thread did not show that you had replied. I hope this has not caused inconvenience.

Joshua :

Thank you for the above information. Could you confirm that you have a written contract? If so does the contract contain any provisions regarding assignment or subcontracting?