Question

Ed is an electrician working as a subcontractor working with a contractor for a project Tom was completing on his home. After the work was completed, Ed submitted an invoice to the contractor who failed to pay. What recourse does Ed have available to him to recover his funds?

A. Ed can sue the contractor overseeing the job
B. Ed can sue the homeowner, Tom
C. Since the agreement was between the contractor and Ed, Tom cannot be sued
D. Unless Ed tracks down the contractor, he has little resource

Answer 1

Ed can sue the contractor overseeing the job because his contractual agreement was with the contractor, not the homeowner. Options regarding suing the homeowner or having little recourse without finding the contractor are usually incorrect as Ed does not have a direct contract with the homeowner and legal actions can still be pursued even if the contractor is elusive.

Step-by-step explanation:

Ed, being an electrician working as a subcontractor, has recourse options if a contractor fails to pay for services rendered. The main course of action he has is A. Ed can sue the contractor overseeing the job. This is because his contractual agreement was with the contractor, not the homeowner. If going to court seems excessive or if Ed prefers an alternative, he could attempt to settle the matter through mediation or arbitration, which are common forms of dispute resolution in the construction industry.

Option B. Ed can sue the homeowner, Tom is generally incorrect, as Tom likely does not have a contractual obligation with Ed directly.
Option C. Since the agreement was between the contractor and Ed, Tom cannot be sued is correct in most situations where there is no direct contractual relationship between Ed and Tom.
Option D. Unless Ed tracks down the contractor, he has little recourse is not entirely correct because even if the contractor is elusive, legal means such as filing a claim or using a collection agency may still be available to Ed.