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Old May 15th, 2014, 02:53 AM   #1
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Agent/Contractor and Sub Contractor payment liability

I'm looking for an answer to the following question:

I have been subcontracted by a main contractor acting as an Agent or Middle Man to deliver a project for a customer. I'm 99% done on the project and have just been told by the Agent that the customer is filing for bankruptcy and I may not get paid or may have to wait a considerable time for possible payment.

In the T&Cs between me and the Agent I am classed as their 'subcontractor'.

Q: Does the main contractor carry all liability in this instance to pay the sub contractor? After all, the Agent/Main Contractor's name is on my bill - not the end customer.

thanks in advance!
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Old May 15th, 2014, 04:30 AM   #2
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Re: Agent/Contractor and Sub Contractor payment liability

I understand your dilemma, I've had a similar problem but TBH, this is not really the place to ask your question - you need advice from a legal professional in Germany, your professional video organisation (if you belong to one) or your professional insurance company, I wish you luck.
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Old May 18th, 2014, 01:06 PM   #3
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Re: Agent/Contractor and Sub Contractor payment liability

Yes, the general contractor should pay you regardless of the end client situation.

The question is, do you have a legally binding contract in case you need to take them to court if they don't pay? And is it worth if fighting through the courts, is the amount large enough to cover legal expenses and still pay you something?
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Old May 19th, 2014, 02:08 PM   #4
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Re: Agent/Contractor and Sub Contractor payment liability

Dave you are right and I have begun to seek legal advice but not had a firm answer yet. In these sorts of contracts ( And I do have one) I'm named just as the sub contractor, with no mention of payment liability in the event of non payment. Ervin I was of the same opinion as you and my experience has proved as much in the past but from what I have read when a main-contractor acts as a middle man or an agent things can get complicated!

I'll post my findings as it may be of interest to others. For interest this is a cross country contract so unfortunately the laws where I live in Germany probably wont apply...I'm inevitably bound by the rules in the country where the main contractor is based.

Ps Ervin, yes...its more than enough to warrant a legal fight!
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