Legal Question in Construction Law in California

Re: Subcontractors failure

I don't understand the question. Are you asking, "Who must make up the missing money?"

I think the answer is that problems with subcontractors, whether they be money issues, failure to perform, negligent or defective workmanship, or whatever, are usually going to be the responsibility of the general contractor. The general is the party that retains them, supervises them, etc. and in most cases is responsible for the selection of the subs.

There are obvious exceptions, such as where the owner has insisted upon a particular sub or supplier, or where the terms of a particular contract shift the risk.

Re: Subcontractors failure

If the general contractor enters into a contract with a subcontractor and pays the subcontractor a deposit and then the subcontractor files for bankruptcy, then the general contractor is likely considered a creditor of the subcontractor. The owner probably has no responsibility. The GC's recourse is to recover whatever it can as a creditor in the bankruptcy proceeding and hire another subcontractor.

Best of Luck.

www.SoCalConstructionLaw.com

Re: Subcontractors failure

The bankruptcy judge will decide that, after everyone files their claims.

Re: Subcontractors failure

Allege fraud, then you may be able to not have it discharged. Contact me directly.