National Roofing Legal Resource Center

Contract provision addresses overtime payment for additional work when a subcontractor has not delayed a project

General contractor-drafted subcontracts often contain contract provisions recognizing a subcontractor is entitled to payment for overtime work performed by the subcontractor when the subcontractor has not delayed the project. However, these overtime provisions commonly limit a subcontractor's recovery to only the subcontractor's actual additional labor costs with no markup allowed. Roofing contractors are encouraged to include in their subcontracts labor rates for standard time and overtime for additional work so the applicable rates are stipulated in the subcontract.

Overtime payment for additional work when subcontractor has not delayed project: If Subcontractor is requested to perform overtime or premium work for reasons that are not due to the fault of the Subcontractor, Subcontractor shall be compensated at Subcontractor's standard rates for overtime work or, if no such rates have been established, Subcontractor shall be entitled to recover the increased costs incurred by Subcontractor including overhead and profit.


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