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Attorneys James R. “JR” Clary, Jr., Christopher S. Suba, Casey D. Neale and Briton J. Myer

How To Avoid Subcontractor Default

On Behalf of | Jun 11, 2018 | Construction Law

When hiring a subcontractor, you assume that the person will do whatever it takes to provide a high level of service.

Unfortunately, there are times when this doesn’t happen. Instead, things don’t work out with the subcontractor, thus leading to default.

While there’s no way of knowing what will happen when you hire a subcontractor, there are steps you can take to avoid default:

  • Get serious about the prequalification process: Don’t assume that every subcontractor you come across has what it takes to complete the job. Prequalification is a must, as this will give you the confidence necessary to make a sound hiring decision.
  • Know the signs of a flaky subcontractor: For example, if a subcontractor isn’t able to provide a solid timeline for completing the job, you may want to reconsider working together.
  • Always use a contract: Yes, there are times when it’s easier to hire a subcontractor without a contract. However, if you do this, you’re putting yourself in a bad spot in the event of a default. It’s a must to protect yourself with a contract. You’ll never regret the decision to do so.

As a contractor, you know there are times when you’ll need help. You also know that hiring a subcontractor can be touch and go, as you don’t always know what you’re going to get.

If you run into any issues with subcontractor default or the need to terminate an agreement, make sure you read through your contract to better understand the steps you can take. Also, become familiar with the laws in your area, as this will give you a clear idea of your legal rights.

Source: Construction Connect, “Tips for Avoiding & Dealing With Subcontractor Default,” Kendall Jones, accessed June 01, 2018