Legal support for a subcontractor in recovering amounts retained for securing proper contract performance

The Law Firm’s attorneys successfully provided legal support to a Client in the process of recovering amounts retained for securing proper contract performance and defect removal during the warranty and guarantee periods from the payment due to the Client for completed work.

As part of an investment involving the construction of expressways, the Client of the Law Firm, acting as a subcontractor, performed work that included planting greenery on the project sites.

Under the subcontract agreements, in order to secure the proper performance of the contracts and the removal of defects under warranty or guarantee, the contractor withheld 30% of the value of each invoice issued by the subcontractor. The return of these retained amounts was to occur partly after the final acceptance of the investment and partly after the expiration of the warranty and guarantee period.

Despite the conditions being met that entitled the Client to receive the return of the first portion of the amounts withheld for security, the contractor unjustifiably avoided making the payment.

Thanks to the involvement of the Law Firm’s lawyers, the letters they sent, and the arguments presented, the Client was able to recover the amounts owed to them in a short period of time.