Back charges in the construction industry refer to costs that are incurred by a contractor or subcontractor as a result of the actions or inactions of another party involved in the project. These charges typically arise when one party fails to fulfill their contractual obligations, leading to additional expenses for the party that is left to pick up the slack. For example, if a subcontractor fails to complete their work on time, causing delays in the overall project schedule, the general contractor may incur back charges for the extra labor, materials, or equipment needed to make up for lost time.Back charges can also be used as a way to hold parties accountable for their actions and encourage timely and efficient completion of construction projects. By including provisions for back charges in construction contracts, parties can
What is Back Charges?
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