Legal Question in Business Law in Virginia

Sub-Contractor law

I work for a Security company who uses Sub- Contractors all over the States. We require our contractors to submit their invoices with in 30 days of the job being completed. If a contractor submits his invoice beyond the date and we are paid for the job that was contracted to be completed, do we have to pay the contractor? Can we asses a late penalty and what would be the penalty we could asses? Additionally we have some customers who are on a maintenance agreement and we do not bill by the job, would we still be liable to pay in this instance as well?


Asked on 6/18/09, 1:41 pm

1 Answer from Attorneys
Michael Hendrickson Law Office Michael E. Hendrickson

Re: Sub-Contractor law

Of course, you must pay the contractors who submit a 30+ day invoice unless you have a provision in your agreement with them which requires that they suffer a forfeiture of their right to be compensated under these circumstances (in my opinion).

And, in my view, any late penalties assessed would need to accord with what that agreement provides for in this regard.(And, if it's not referenced, then no late penalties.)

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Answered on 6/18/09, 11:01 pm


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