What happens when a subcontractor defaults?

The general contractor is solely responsible for prequalifying the subcontractor. If a default occurs, the general contractor will file a claim and is responsible for managing the default and completing the work. They are also responsible for paying deductibles if they file a claim.

How do you manage subcontractors in construction?

5 Tips for Successful Use of Subcontractors to Manage Jobsites

1. Put it in writing. Clearly define roles and responsibilities for both the subcontractor and your company.
2. Train for customer service. Many subs lack the benefit of your experience with successful customer service.
3. Pay properly.
4. Evaluate.
5. Take precautions.

How do you deal with an unresponsive contractor?

You can file complaints with the Better Business Bureau, Angie’s List, online review sites, and most important, your state’s contractor’s licensing board or commission. Typically, these boards or commissions have simple, online filing procedures that make it easy to make a complaint against a negligent contractor.

What are the penalties if the sub contractor does not perform his duties?

A contractor who has been paid for a project and refuses to pay a subcontractor shall as a penalty, pay 2 percent of the amount due per month every month that the payment is not made. In addition, the prevailing party shall be entitled to his attorney’s fees and costs.

What happens when a builder makes a mistake?

If you’re out on the site and see something wrong or different than you expected, bring the issue to your general contractor’s attention, or your architect. Those are your two primary contacts. If you talk to the sub contractor building the structure, you’ll get nowhere—in fact, it might backfire.

How do you manage compliance of the subcontractors to perform?

Here are six tips that can help:

1. Create a culture of compliance.
2. Understand the rules.
3. Establish an automated process.
4. Integrate your project management and accounting systems.
5. Monitor compliance daily.
6. Conduct your own audit.

What are the roles and responsibilities of a subcontractor?

A subcontractor has a duty to carry out the work with no or minimal supervision. The contractor hires a subcontractor to complete a specific aspect of the project, such as the electrical fittings, plumbing or bricklaying, and the subcontractor is responsible for this work.

How do you deal with a non performing contractor?

Let’s go now to the ten effective ways that help PMs in dealing with underperforming subs.

1. Create a Collaborative Community.
2. Deal with the sub’s underperformance ASAP.
3. External Factors Have to Be Understood First.
4. Know what motivates the subcontractors.
5. Create performance goals together.
6. Reward Improvements.

Do builders guarantee their work?

A building guarantee or insurance backed guarantee is something those within a competent person scheme (CPS) should look to offer. Designed to give your customers peace of mind, a building guarantee assures them they’re protected if your company ceases to trade for one of the eligible reasons.

What rights do you have as a subcontractor?

If a subcontractor feels that the contractor or employer has violated the contract, he is entitled to sue for damages. The subcontractor can file a mechanic’s lien against the property for unpaid wages and expenses. He also has the right to work in a safe and healthy environment.

What happens when the sub contractor is not paid by the main contractor?

When the subcontractor does not get paid then they have grounds to pursue the contractor for monies owed. This could be in the form of wages or unpaid invoices for services rendered. In the USA, the owner of the property can be held liable for payment under a “Mechanics Lien”.

Is non-performance a breach of contract?

You perform your obligations after the time specified in your contract. For example, in the contract for the sale of apples, you might have promised to select and provide a specific grade of apples. You will be in breach for non-performance if you fail to deliver the apples at all.