Construction defects
If general contractor fails to pay subs or suppliers and homeowner pays them directly in order to avoid mechanic's liens, is general contractor owed the management fee specified in the contract? Has this issue been litigated in Virginia or elsewhere?
Re: Construction defects
Without reviewing the actual language
of the contract itself concerning the management fee, it would be difficult to say, but chances are the two issues
are separate and unrelated(and therefore one cannot likely be claimed as an offset against the other). And, if so, the owner's remedy would be to sue
the general contractor at law to be reimbursed for these payments to the subcontractors and materialsmen which should've been paid by the general contractor.
