Back Charge
Back charge definition for contractors. Learn when and how to bill a subcontractor for costs incurred due to their error or delay.
Calculation Formula
Back Charge = (Correction Labor + Material Replacement) + Admin Fee Real Contractor Example
A painter spills paint on a new hardwood floor. The contractor hires a floor specialist for $600 to repair it and deducts it from the painter's final payment.
Put This Into Practice
Knowing the definition is step one. RemodelFin tracks this in real time on every job — no spreadsheets.