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HOW TO AVOID SUBCONTRACTOR DEFAULT

When you hire a subcontractor, you’re relying on that the person to do whatever it takes to provide the highest level of service. Unfortunately, sometimes this doesn't happen.

In fact, sometimes things don't work out with the subcontractor at all, eventually leading to default.

While there's no way of seeing the future and knowing what will happen when you hire a subcontractor, there are steps you can take to protect yourself from a default:

  • Take the pre-qualification process seriously: You shouldn’t assume that every subcontractor you come across has what it takes to complete the job. Pre-qualification is an absolute must. This will give you the necessary confidence to make the best hiring decision.

  • Know the signs of a flaky subcontractor: If a subcontractor isn't able to provide a solid timeline for completing the job, you may want to reconsider hiring them. You don’t have time for that!

  • Always, always, always use a contract: There are times when it seems easier to hire a subcontractor without a contract. However, you're putting yourself in a bad spot in the event of a default. You'll never regret the decision to protect yourself with a contract.

As a contractor, there are times when you'll need the help of a subcontractor. You also know that hiring a one can be risky, 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 fully understand the steps you should take. You should also become familiar with your local laws. This will give you the best picture of your legal rights.

We can assist you should you have any questions.