Back-Charge
Costs deducted from what you're owed for problems attributed to you.
What it means
A back-charge is a cost one party deducts from money otherwise owed to another — most often a GC deducting from a sub's payment for cleanup, damage repair, corrective work, or completing unfinished items attributed to that sub. Contracts often set conditions for a valid back-charge, such as prior written notice and an opportunity to fix the problem first. Disputed back-charges are a common source of payment friction.
Why it matters before you sign
An unchecked back-charge is money removed from your payment after the fact — know what notice the contract requires before one can be taken, and document your work so you can contest charges that are not yours.
In a contract, it looks like this
The GC issued a $3,200 back-charge against the framer's next payment for dumpster loads and patching attributed to its crew.
This definition is a general, educational explanation — not legal advice. XOsign provides AI-assisted document tools and does not provide legal advice; consider consulting a qualified attorney for guidance on your specific situation. Requirements vary by state.
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