contractorshelpdesk

Contractors always hire subcontractors who possess the best skills suited for the particular job. However, they are rarely informed about the practices which can help build long term business relationships with the subcontractors. Failure to build solid relationships with subcontractors often proves to be devastating as the customers, the business and the contractor’s credibility are all put to risk.

Let us look at some areas that should be paid attention to when it comes to hiring subcontractors.

Insurance

Construction site accidents occur more than frequently. Several contractors and workers face severe injuries at construction sites every year. Contractors should try to mitigate the project risk by shifting it to others whenever possible. One of the best ways to do this is to get your subcontractors fully insured.

The contractor should obtain the certificate of insurance containing the particulars of the subcontractor from the insurance company. The insurance plans availed should benefit and protect the contractor adequately.

Subcontractor Agreement

An old saying goes, ‘Any contract that occurs must be done in black and white’. This means that all terms and conditions of any contract must be properly documented.

It is a good practice to obtain a signed, well drafted, Subcontractor agreement from all subs before starting work on the project. There are several factors you require to be present in the agreement such as pricing, insurance requirements and other vital details.

Certain state laws require a warranty obligation with the customer. If the contractor is offering a warranty to the customer, a similar document of warranty should be signed between the contractor and the sub with the subcontractor offering warranty to the contractor.

The agreement must also contain an indemnification provision. This provision ensures compliance with all safety laws and regulations. It also includes rules and regulations regarding the use of tobacco, drugs and alcohol.

If the subs are hired through a manpower supplying company, make sure that the owners of the company are involved in the documentation process.

It is necessary to carry out all the required paperwork before starting to avail services of your subcontractors. Most people are not familiar with the pattern of legal paperwork. There are two ways to go about it; one is to research and learn what type of paperwork will be required, and the other, easier approach would be to purchase templates and forms and fill them.Contractor’s Help Desk has a huge variety of forms that are designed for just that.

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