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general contractors are often hired by site owners to complete major construction projects the general contractors then hire subcontractors from other trades to work on multiple facets of the project everyones payday depends on the site owners following through on the contract with the general contractor in Main Electric limited versus Prince Services Corporation well see who Bears the risk and who has to pay when the owner doesnt hold up its end of the bargain a site owner hired Prince Services Corporation as a general contractor for a construction project in Colorado Prince hired Main Electric and CJ masonry as subcontractors for the project prints typically used a form contract with its subcontractors under the contract Prince would pay the subcontractors at designated intervals and after the project was completed provided like payment was made by the site owner to Prince CJ masonry signed the contract and Main Electric orally agreed to work for Prince the owner became insolvent