Tips for Reducing Subcontractor Risk Part 2
In the first part of our series on reducing the risk of subcontractor default, we looked at three precautionary tips that can help prevent subcontractor default before an issue sets in. Strategies involving the selection of subcontractors, contracting, and insurance can all be helpful. In the second part of this series, we will examine three ways to protect your company after the planning phase of a project.
Diagnose Problems Early, Address Them Immediately
It’s important to pay close attention to the subcontractors on site and look for warning signs of a looming problem. If you notice that morale has dipped, the number of workers has reduced, or materials are not showing up on time, take action immediately. Sit down with the subcontractor and determine if they are having any issues and if you can be of assistance in some way. Most problems can be resolved if you are proactive in dealing with them. If any these issues require litigation, a Bradenton construction lawyer can protect your interests.
Limit Your Subcontractor Exposure
Subcontractor default is prevalent on many construction sites and can be damaging to your project. One way to reduce your risk is to minimize the number of projects that subcontractors are responsible to complete. Selecting strong subcontractors before the start of your project and putting them in positions where they are most skilled or in low-risk positions, can increase your protection.
If you have made reasonable attempts to resolve an issue with a subcontractor or if they have committed a highly negligent act, your only recourse may be to end your contract with them. However, this is not easy. As a matter of fact, it’s not advisable if you are close to completing your project. Check your contract to see what provisions are in place for terminating a subcontractor. Also, make sure that proper notice was given before moving forward. You don’t want to expose yourself to potential litigation, working with any of the Bradenton construction lawyers at Trent Cotney P.A. can ensure that you are handling the matter properly.
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.