Backcharge
An amount deducted from a subcontractor's payment due to incomplete, defective or delayed work.
A backcharge is a billing adjustment where one party charges another for costs incurred due to errors or omissions. It serves as a financial tool to recover costs from subcontractors or suppliers and can impact project relationships if not managed carefully.
Used in a sentence
We issued a backcharge to the subcontractor for the additional rework required.
Synonyms/variation
Deduction
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