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Q: How long can I legally withhold payment on an invoice to a subcontractor?

Apr 28 2009

Answered by: Ashley de Safrin Ask a question

If you are unhappy with their work, then the amount may be open to negotiation. If you simply want to delay payment, you should think through the implications of this.

There may be no legal limit, but if you withhold payment for an unreasonable length of time, simply to help your own cash flow, then the subcontractor could refuse to do work for you in future. If you have a genuine problem, then talk to the subcontractor and see whether you can negotiate payment by instalments.

If you have also agreed to their terms and conditions, then you are legally bound to honour them as they form an agreement between you and the subcontractor.

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