Legal relationship between contractor and subcontractor

legal relationship between contractor and subcontractor

Relationships between contractors and subcontractors are .. where the main contractors is legally responsible and many end up having to carry the. It can be difficult to differentiate between a contractor and a subcontractor, here He will probably defend the quality of his work; your relationship may sour, and. 3) Relationship between the main contractor and the subcontractor related to the contractor-subcontractor relationship with respect to legal.

Agreements Between Contractors & Subcontractors

Subcontractors also work on a contractual basis, and they also offer a particular set of skills which they perform for customers. The key point about subcontractors is that they form agreements with the contractor, not with the customer. Subcontractors often specialize in one specific area of construction and try to network with contractors who negotiate for larger jobs that include this area of specialty.

In this way, a successful subcontractor will always have work, thanks to their network of contractors.

Managerial Contractors — They make things happen! While contractors need to generate referrals and engage in networking with customers to find business, subcontractors are mostly looking to network with the contractors that have work for them.

legal relationship between contractor and subcontractor

As a result, contractors need to be far more customer-focused than subcontractors to function effectively. Furthermore, subcontractors tend to specialize in one specific area, like drywalling, tiling, insulation, or a different trade.

Subcontractor vs Contractor: Understanding the Difference

This makes subcontractors especially good at product and service delivery for their area of expertise. As a contractor however, you need to see the big picture of a project more than your subcontractors do. Subcontractors can be very effective workers, but contractors must be organized planners and effective managers. This is what entitles contractors to earn profits on the work of the subcontractors that they deal with.

legal relationship between contractor and subcontractor

Dangers and Pitfalls of Subcontracting As a contractor, it is important to make careful decisions when hiring a subcontractor. Imagine that you hire a subcontractor who lays carpet for your next project. When you check his work, you find that he has done a poor job and that the client will never accept it.

Firing a subcontractor could be seen as a break of contract, and in any case, would leave you needing to hire someone else to complete the work. Subcontractors also are not responsible for the terms of the original work agreement between the contractor and client.

legal relationship between contractor and subcontractor

After that, the architect has no further involvement. The Building Department of the municipality is responsible for protecting life and safety. They review the architectural and other construction drawings for compliance with building codes prior to issuing a building permit.

Subcontractor Agreement Vs Contractor Agreement - Contract Law |

They review things like the height of the building, square footage, intended occupancy, fire ratings, seismic requirements, and other considerations with an eye towards keeping the public safe.

Once construction is under way, the building inspectors visit the site to check to see if the building is being built per the codes and approved plans. When construction defects are discovered and damage is found, many homeowners and condominium unit owners want to know why the building inspector and township are not responsible.

While they may have some moral responsibility, the law of New Jersey gives them a qualified immunity from liability for negligence in doing building inspections.

In the absence of fraud ie, taking bribesthe building inspectors and the municipalities are immune from civil liability. This immunity was presumably granted by the legislature to prevent every municipality in New Jersey from being bankrupted by construction defect cases. The general contractor can also be, and often is, the owner of the project.

Independent Contractor Agreements - All Up In Yo' Business

Where there is an owner separate from the general contractor, the general contractor is hired by the owner of the project to handle the overall construction, supervision, and coordination of the work of the subcontractors to ensure that the construction project meets the schedule for delivery of the units and is built in accordance with the approved construction drawings, applicable building codes, specifications and standards in the industry.

The general contractor has to be cognizant of the fact that accepting the low bid from an unqualified subcontractor may lead to delays in the job or to construction defects that may not be detected for many years.