Can a general contractor in GA hold payment to a subcontractor based on an insurance claim filed on the proper

Question

A subcontracted framer caused damage to the property and the GC is holding payment because nobody's insurance wants to pay.

Answer 1

You must be the sub.  If so pay for the repairs or do not expect any payment.

Answer 2

That seems like a very fair action.

To be even more certain, why not re-post this question under the LAW & ETHICS section?  Lawyers look there.

In the meantime, I think the holding of the funds is a proper action.  Confirm this, please, with an attorney.

Answer 3

What does the contract say?

Likely, that framer is going to have to pay the GC for the damage.  Any damage to HIS part of the work - aka the framing - is going to be excluded under his GL coverage.  Likewise, the GC's work doesn't cover shoddy work done by the sub.  

In other words, there isn't any insurance out there, that will pay the sub for damage they do to their own work.  Or shoddy work, that causes damage to someone else's part of it.  Most of the time, the GC can - and will - hold out on payment until the damages have been taken care of.