Factors to Consider When Hiring Subcontractors Part 1
Our construction attorneys in Orlando understand that finding skilled workers can be tough, but it’s not impossible. This is one of the reasons why many in the construction industry hire subcontractors. We’ll discuss how a general contractor (general contractors) and subcontractor team works together and identify characteristics that qualify a subcontractor. Visit Part 2 to read the rest of the article.
How Contractors and Subcontractors Work Together
Contractors will link with subcontractors to complete work on projects it has bid on. The subcontractor is in direct privity with the general contractor while the general contractor is in direct privity with the owner of the project. The contractor acts as the manager while the subcontractor is the worker that provides specialized labor and materials for the project.
How Subcontractors Help
Hiring subcontractors is beneficial to contractors because they reduce risk, costs, and increase work performance. Subcontractors can be an asset to contractors for a number of reasons. For one, they help reduce a contractor’s costs and legal liabilities. Other benefits include:
- They bring more knowledge and experience to the project
- It’s more cost-effective to hire a subcontractor than a full-time employee
- Subcontractors can provide their own equipment and material
- Reduced payroll and benefit expenses for the general contractor
What Qualifies a Subcontractor?
The best and most qualified subcontractor should be the goal of any contractor. The following are things to look for when hiring a subcontracting candidate:
- Experiences and references are readily available
- Meets project requirements
- Completing work within predetermined deadlines
- A solid history with other professionals such as contractors, bankers, material supply companies
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.