Urgent: Contractor is not finishing the final work
Hey everyone recently i have opened a new store and i have paid the contractor always on time in full except for $10000 holdback agreed to be paid once all the work is completed. But hes been asking for his money and refusing to finish the final work. I was wondering if someone here can help me about legal implications that i could face if i dont pay him until he finishes the work? Am i on the wrong? Hes also asking me to charge interest now and its only been 5 days since we opened the store. I would really appreciate if someone could help me as i am really worried. Here are important parts of the contract that i think relate to this matter:
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ARTICLE A-5 PAYMENT 5.1 Subject to the provisions of the Contract Documents, and in accordance with legislation and statutory regulations respecting holdback percentages and, where such legislation or regulations do not exist or apply, as agreed between the Owner and the Contractor herein, subject to a holdback of 0 percent ( 0% ), the Owner shall pay in Canadian funds: .2 progress payments to the Contractor on account of the Contract Price together with such Harmonized Services Taxes as may be applicable to such payment, and shall be made by the Owner in full, upon receipt of the invoice; .3 upon Substantial Performance of the Work, pay to the Contractor the unpaid balance of any agreed upon holdback amount when due together with such Harmonized Services Tax as may be applicable to such payment. 5.2 In the event of loss or damage occurring where payment becomes due under the property and boiler insurance policies, payments shall be made to the Contractor in accordance with the provisions of GC 10.1 - INSURANCE. [B]5.3 Interest .1 Should the Owner fail to make payments to the Contractor as they become due under the terms of the Contract or in an award by arbitration or court, interest at 2.0 percent (2.0%) per annum above the prime rate on such unpaid amounts shall also become due and payable until payment. Such interest shall be compounded on a daily basis. The prime rate shall be the rate established by the Bank of Canada as the minimum rate at which the Bank of Canada makes short term advances to the chartered banks.[/B] PART 4 PAYMENT GC 4.1 FINANCING INFORMATION REQUIRED OF THE OWNER 4.1.1 The Owner shall, at the request of the Contractor, prior to execution of the Agreement, and/or promptly from time to time thereafter, furnish to the Contractor reasonable evidence that financial arrangements have been made to fulfill the Owner’s obligations under the Contract. GC 4.2 APPLICATIONS FOR PROGRESS PAYMENT 4.2.1 Applications for payment on account as provided in Article A-5 of the Agreement - PAYMENT may be made as the Work progresses. GC 4.3 PROGRESS PAYMENT 4.3.1 The Owner shall make payment to the Contractor on account as provided in Article A-5 of the Agreement -PAYMENT immediately upon receipt of the Contractor’s invoice. GC 4.4 SUBSTANTIAL PERFORMANCE OF THE WORK 4.4.1 When the Contractor considers that the Work is substantially performed, or when permitted by the lien legislation applicable to the Place of the Work a designated portion thereof which the Owner agrees to accept separately is substantially performed, the Contractor shall prepare and submit to the Owner a comprehensive list of items to be completed or corrected and apply for a review by the Owner to establish Substantial Performance of the Work or substantial performance of the designated portion of the Work. Failure to include an item on the list does not alter the responsibility of the Contractor to complete the Contract. 4.4.2 No later than 3 days after the receipt of the Contractor’s list and application, the Owner will review the Work to verify the validity of the application, and no later than 3 days after completing the review, will notify the Contractor whether he agrees that the Work or the designated portion of the Work is substantially performed. 4.4.3 Immediately following the agreed Substantial Performance of the Work, the Contractor will establish a reasonable date for finishing the Work. [B]GC 4.5 FINAL PAYMENT 4.5.1 When the Contractor considers that the Work is completed, the Contractor shall submit an invoice for final payment. 4.5.2 The Owner will, immediately upon receipt of the invoice from the Contractor for final payment, review the Work. The Owner will immediately after reviewing the Work, pay the Contractor in full, or give reasons, in writing, as to what he considers is incomplete. Upon agreement between the Owner and the Contractor as to such incomplete work, and upon completion of any such incomplete work, then the Final Payment will be made by the Owner to the Contractor immediately.[/B] GC 4.6 PAYMENT OF HOLDBACK UPON SUBSTANTIAL PERFORMANCE OF THE WORK 4.6.1 After Substantial Performance of the Work, the Contractor shall submit an application for payment of the holdback amount in accordance with paragraph A5-1, if applicable. 4.6.2 The holdback amount is due and payable on the day following the expiration of the holdback period stipulated in the lien legislation applicable to the Place of the Work. The Owner may retain out of the holdback amount any sums required by law to satisfy any liens against the Work.