Hiring Subcontractors-The Importance of a Firm Contract


As a trade contractor, or sole-owner artisan contractor who may hire subcontractors (subs), you are vulnerable to lawsuits from subs for claims of an unsafe workplace. If a sub fails to maintain adequate insurance, their actions on the job site (as well as injuries to their employees) can become the responsibility of the contractor who hires them.

It is important to obtain a written, signed contract prior to hiring a sub for a job. You can avoid lawsuits(and facilitate the claims process) if you have a contract in place when they are hired to do a job, and/or you subcontract your work to others. By taking this simple step, you can better safeguard your business and assets, in the event that a loss does occur.

Construction contracts vary by state and jurisdiction. If you need assistance in developing and implementing a written contract, we encourage you to engage local counsel.

Posted Thursday, January 26 2017 12:45 PM
Tags : subs, contractors, construction contracts, artisan contractor, contractor insurance, construction insurance

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