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What does a sub contractor need to know?

A subcontractor is someone who sets their own hours and chooses the work they want to do. They get paid by the contractor for their services, and have to pay their own taxes, provide their own tools and supplies, and do not generally receive health insurance, benefits, or vacation time from an employer.

Are you liable for your subcontractors?

Vicarious liability doesnt just arise in instances where the actions of your subcontractor has lead to injury you can also be held liable for your subcontractors failure to complete a job or perform a job correctly or any other violations of their contract.

What should a subcontractor contract include?

8 things a subcontractor agreement should include Business information. Include names, businesses names, and contact information for both the subcontractor and the hiring contractor. Scope of work. Payment terms. Change orders. Licensing and insurance coverage. Dispute resolution. Termination clause. Flow-down provisions.

Why are subcontractor agreements important?

Simply put, a Subcontractor agreement is a risk control strategy which shifts risk from one party to another. With such an agreement, the contractor is protecting themselves from risk derived from the work of their Subs.

How do you hold subcontractors accountable?

The two most common methods for protecting against subcontractor default are subcontractor bonds and subcontractor default insurance. Both are used to manage the risk of subcontractor default but there are differences in how they work, who bears the risk and what parties are protected.

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