I had a plumber working on my sewer line, and unfortunately, they excavated too much, resulting in significant damage that’s beyond their repair capabilities. They’ve accepted full responsibility and signed a document acknowledging it. They’ve already filed a claim with their insurance.
Now, I need to bring in a general contractor, a concrete specialist, an engineer, and possibly others to handle the repairs. My question is about how to approach the contracts moving forward. We agreed that I can choose the contractors, but who will they invoice? If they bill me directly, I have more control over the process, but I’ll need to front the costs until the plumbing company reimburses me. On the other hand, if they bill the plumbing company directly, I risk losing some control since the contractors won’t be working directly for me. What’s the best way to handle this?
It sounds like you’re in a tricky situation, but it’s great that the plumber is taking responsibility and that you have a signed document regarding their liability. Here’s how you might structure your contracts and manage the situation:
Communicate with the Plumbing Company: Start by discussing your preferences with the plumbing company and clarify how you’d like to handle the contractor payments. Since they’ve accepted responsibility, they should be open to working with you on this.
Direct Billing to the Plumbing Company: If the plumbing company is covering the costs through their insurance, it’s reasonable to have the contractors bill them directly. However, you can request to be included in the process. This way, you retain some oversight and can ensure that everything is getting handled properly.
Contracts with Contractors: Draft contracts with the general contractor, concrete specialist, and engineers specifying that they are being hired for the repairs resulting from the plumber’s work. You could include a clause that outlines the plumber’s company will be responsible for payment directly to them through the insurance claim.
Payment Escrow: If you’re uncomfortable with direct billing to the plumbing company, consider setting up an escrow account for payments. The plumber can deposit the claim amount into the account, and you can authorize payments to the contractors as work is completed. This ensures that you’re not out of pocket but maintains control over the payments.
Regular Updates: Establish a regular communication schedule with all parties involved (plumber, contractors, and potentially your insurance adjuster) to ensure that everything is proceeding smoothly and any issues are resolved quickly.
Document Everything: Keep all correspondence, contracts, and invoices organized. This documentation will be crucial if any disputes arise in the future regarding payment, scope of work, or responsibilities.
Legal Advice: If the situation becomes complex or contentious, it may be worth consulting a lawyer to ensure your interests are protected and to help navigate the repair process and contracts.
By taking a proactive approach and ensuring clear communication among all parties, you can help mitigate potential issues and keep the repair process on track.