Hiring a Sub-Contractor For Jobs

A Subcontractor is an individual or a company hired by a general or principal contractor to perform a specific task as part of a large-scale project.

A subcontractor can be a sole entity – eg an electrician undertaking work for a building contractor – or any national organization. A subcontractor works on a contract with the contractor for some provided services and generally the contractor doesn’t employ the subcontractor as a regular employee. Subcontractors perform a part of the project for which the contractor is responsible. For instance, a contractor may hire an electrician to complete a part of the contractor’s overall project. The contractor is liable to the customer for the total work including the part done by the subcontractor. Subcontractors work on contracts without any fixed termination date and the work can be stopped at any moment

Important points to remember Before Hiring a Sub-Contractor:

1. While hiring a sub-contractor be sure that he has the respective state’s license for his said trade.

2. Know the background and work ethics of the sub-contractor it must be checked whether there are any complaints logged against the sub-contractor to prevent yourself from hiring someone who can cause problems.

3. In the written document, it should be specified that the subcontractors’ aren’t employees and that they are to pay their own taxes and benefits.

4. To protect both parties businesses, the working relationship must begin with a comprehensive written contract.

5. Have on paper a list of materials used so that if any changes are made, both parties including the homeowner signs off on the changes.

6. Don’t let the clients deal with the sub-contractors on jobs.

7. Make sure to go through the sites and let the sub contractors know what is expected of them. A sub contractor is responsible for all works and needs to check and rectify the work performed by the sub contractor.

8. It is very important to review and inspect the work completed by the sub-contractor on each job.

9. While dealing with a sub contractor, it is very important to save the records of dealings with him which contain the contract papers, repairing list and cost incurred, up to date copies of certificates etc. Keeping records of all kind of conversations even after the project is completed is sometimes helpful.

10. Both the parties should have a good relationship with each other. For the general contractor, working with a dependable subcontractor implies completing jobs as per requirements. And for the subcontractor, a sound reputation gives better opportunities for his career and future jobs.

The written agreement is the base of a subcontractor agreement. It is the base document in the file of documentation which is needed when a sub contractor is hired. But there are basic points which should be checked before starting work:

• Certificates of insurance. There must be a condition in the agreement that makes it mandatory for subcontractors to carry workers’ compensation insurance, general liability insurance etc. Make sure that certificate of insurance issued by the subcontractors’ insurer shows that workers’ compensation is currently in place and details the coverage’s, expiry dates and limitation of the policy.

• Indemnification. Have a contract with a “hold-harmless” clause which is also called indemnity agreement.

Once you have the above guidelines in place you will notice that the sub contractor is more efficient on all jobs and deadlines will be more regularly adhered to.

Source by Wee Wolfe

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