8 Tips for Hiring Subcontractors Part 2
Subcontractors are the face of your organization. They are doing important jobs on construction sites daily. Ideally, they are utilizing skills to enhance your project and your company. However, because they are not an employee and often work on other projects while working on yours, they can be a bit of a wildcard. Will they show up on time? Will they continue to work? Do they perform quality work? These are all valid questions. Their answers will determine the outcome of your project.
In part one of our series on hiring subcontractors, we covered several preemptive actions that contractors can make to ensure they bring in the right people. In part two, we will cover more items that you should look for prior to taking the plunge.
Is The Subcontractor Financially Stable?
An important aspect of working with a subcontractor is there ability to afford their own materials for the project. If they can’t or if you notice that materials are showing up late or their staff are not showing up at all, adjustments need to be made. It’s critical to examine the financial stability of the contractor. For larger projects, it’s worth requesting that the subcontractor submit a financial statement. Also, ask the subcontractor if they have filed for bankruptcy in the past.
Do They Have The Proper Insurance And Licensure?
As a contractor, you could be liable if you hire an uninsured or unlicensed contractor. Ask for these items before work begins. If they cannot provide them, they are likely not skilled in their craft and not a good hire.
Do They Have The Proper Safety Training?
Similar to insurance and licensure, a subcontractor that does not have safety training can put your business in danger. Especially, if they are injured or their actions lead others to be injured. If you are uncertain of what types of safety training a subcontractor should have, ask an Orlando construction lawyer. They will be able to give you the advice you need to achieve and maintain compliance.
Offer Subcontractors Market Standard Wages Or Better
This is a vital part of getting reliable contractors. Always pay them what the market says they should be paid or better. This step will help you build a good reputation among subcontractors and allow you to be selective. When you pay below the market rate, fewer subcontractors will be interested in working with you and you may be forced to hired people who aren’t as skilled.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.