How does a subcontractor work with a general contractor?

Subcontractor Subcontractors follow the instructions of the general contractor or whoever is overseeing the project. A subcontractor is hired by the general contractor as a contracted employee, never having to work directly with a client or develop their own customers.

What happens when a subcontractor abandons a project?

Subcontractors may also abandon work or display unprofessional behavior while at work, and because they aren’t employees, you’ll have no way to discipline them if they create difficulties around the project.

What happens when subcontractor doesn’t get payment?

It’s every subcontractor’s nightmare, at the end of a project they don’t hear anything from the general contractor anymore. This can be infuriating as well as can affect your business and livelihood. Subcontractors have more tools than ever to ensure payment from general contractors.

Can a general contractor coordinate a renovation project?

If you have all of the proper licensure and materials to be a general contractor, you can coordinate your own construction or renovation project. This would require that you hire subcontractors to help fulfill your specialized needs. However, being your own general contractor can still reduce the cost of a renovation project.

When is a subcontractor the right way to go?

Updated March 24, 2019. In many situations, a subcontractor is a right way to go because there are certain areas that a contractor needs an expert in certain trades. A construction business or general contractor is dedicated to managing the overall activities and performance between subcontractors.

Can a general contractor not pay a subcontractor?

You’ve put in the hours and resources into a project, but in the end, the general contractor doesn’t pay you for your work. It’s every subcontractor’s nightmare, at the end of a project they don’t hear anything from the general contractor anymore.

Why do you need a subcontractor for a construction project?

He is an engineer with experience managing and overseeing large civil works construction. In many situations, a subcontractor is a right way to go because there are certain areas that a contractor needs an expert in certain trades.

Who is responsible if a subcontractor makes an error?

General contractors are often the go-to source for blame. After all, they are responsible for hiring subcontractors to complete portions of the project. They’re the ones ultimately in charge of the work. General contractors can protect themselves by ensuring each subcontractor has their own liability insurance to protect against any errors.

What are the pros and cons of subcontracting?

Cons of Subcontractors: Subcontractors do not work directly with the client, meaning you have no control over who’s picked and what quality work they can perform. A subcontractor does not always have the same level of commitment and loyalty that permanent employees or general contractors might have.

Is it possible to be your own general contractor?

It is possible to be your own general contractor so that you don’t have to rely on hiring others to get the job done for you. If you have all of the proper licensure and materials to be a general contractor, you can coordinate your own construction or renovation project.

Can a GC inspect the books of a subcontractor?

In California and Maryland, the GC even has the right to inspect the books of their subcontractors. Compared to the general contractor, a subcontractor’s work is more narrowly focused. These are your specialists, highly trained in a certain trade such as drywall, plumbing, HVAC, roofing, etc.

Can a general contractor be sued for unlicensed work?

For example, if an owner finds out that a subcontractor on the project was an unlicensed subcontractor, the owner may accuse the contractor of engaging in unlicensed work himself, or aiding and abetting unlicensed work.

Who are the parties to a general contractor contract?

Some or all of the enumerated tasks are subsequently contracted to other entities (subcontractors) for performance. For general contractor relationships to exist there must be three parties: a principal, an independent contractor, and a subcontractor hired by the independent contractor.

What happens when a contractor refuses to pay a subcontractor?

If the owner then fails to pay, the subcontractor can then file the lien. A mechanic’s lien can be used to foreclose on the property in question as a means to collect the money the subcontractor is owed when the property sells. In cases like this, it doesn’t matter whether or not the owner of the property has paid the contractor in good faith.

What do subcontractors need to know about a contract?

It accomplishes this by requiring that the general contractor’s contract with the subcontractor include a section stating that, generally, the project parameters agreed to by the general contractor also must become part of the agreement between it and its subcontractors (i.e., those agreements “flow through” to the subcontractors).

Can a subcontractor refuse to do extra work?

As contracts usually dictate that a subcontractor cannot refuse to perform extra work under most circumstances, it is important that subcontractors follow the contractor’s change order procedure precisely and, likewise, insist that the general contractor satisfy it, as well.

Can a general contractor be blamed for a subcontractor’s error?

There are times, however, when the general contractor’s own independent negligence is to blame and not any error by a sub. It is, after all, “in overall responsible charge” of the project.

Can a subcontractor sue a contractor for lack of licensure?

This is valuable knowledge for a contractor threatened with suit by the project owner, where the owner is trying to gain leverage by threatening to hold the contractor liable for the lack of licensure by a subcontractor on the project.