As GCs can deal with the subjects of the problem

Almost all of the main contractors have a story about a sudden director of nightmare. Whether it’s a cheeky work or simply not being submitted to the workplace, current labor market and current skills are an increasingly common reality.

Trent Cotney, a partner and head of construction practice in Tampa, Florida, Adams and Reese, said that since the Covid-19 pandemic, there has been an exponential growth in the use of subcontractors at workplaces.

“A” problem subcontractor “would be anyone or entity that constantly causes problems that adversely affect a construction project,” he said. “Common problems include labor delays, erroneous communication or non -communication, lack of teams or experience or proper labor, a breach of safety regulations or payment problems and delays, all of which affects the continuity of the project.”

In order to safeguard their interests and ensure the success of the project, lawyers say that contractors need to understand effective strategies and contractual protections to deal with the issues of the problem.

“If the first one is smart, they will do their homework in advance,” said Cotney. “You know what you are engaged in and do not work with substance that are not reliable or have problems. It is worth paying more to have a professional subcontractor with you.”

Treating with trouble trouble

Jeffrey Paul Lutz, a lawyer for the Atlanta CM Law, said the front line of defense to avoid issues is a comprehensive investigation into its past labor history and making reflexive decisions during the hiring process.

“The lower bidder means little if hiring it will cost you longer through the process of the order of change, the corrective work, the resolution of disputes and/or the commitment of the lawyer,” he said. “I advise all my contracting customers who carry out detailed fund controls, review past performance and verify references to ensure that the subcontractor has a solid trajectory.”

The second line of defense would be to write a clear and complete subcontract that describes the extent of the work, deadlines, quality standards and penalties for breach.

“A well -developed subcontract clearly defines expectations to ensure accountability, quality and timely delivery,” said Lutz.

During the project, it is important to implement a system for continuous quality supervision and control to ensure that work complies with required standards and addressing problems immediately to prevent them from warming up.

“This can be achieved through effective communication and maintaining open and transparent communication with subcontractors to foster collaboration and quickly solve any problem,” said Lutz. “Although regular communication is essential, it is equally important to document your written directives in writing.”

GCs have no trouble risks when working with problems, more often in the context of second -rate work loss and financial losses. After all, GCs are responsible for the task of their SUn, so they assume a potentially substantial risk if their substance is wrong.

“The problem that does not fulfill the project specifications, quality deadlines or standards probably cause delays to the project, costs impacts, potential reputation damage and possible legal disputes that are the last time the duration of the project,” said Lutz. “Effective risk management strategies, such as exhaustive review, clear contracts and continuing supervision, can help mitigate these risks.”

Provisions in contracts

According to lawyers, problems with problems are reduced to well -written contracts and good communication lines.

Chad Caplan, a member of Albany, New York’s law firm, Hinckley Allen, independent of due diligence during the selection process, may still have problems. That is why the form in which the subcontracts and the provisions contain can be made can make or break a paragraph even before a dispute occur.

For example, subcontractors should explicitly state that “time is the essence”, emphasizing the importance of adhering to the deadlines and should allow reasonable modifications to the schedules and milestones of projects to adapt to unforeseen circumstances.

“The agreement must specify that some conditions, such as claim communications, are strict prior, describing precise deadlines, procedures and documentation required for claims, including backup materials,” said Caplan.

In addition, limiting responsibility for consistent damage and clarifying that liquidated damage is not penalty, but are provided to possible losses are crucial. Clauses must allow the liquidated damage to be evaluated with respect to the blame of the subcontractor, said Caplan.

Consequences and insurance

Even then, problems may arise. Thomas Cotton, Schencck’s partner, Price, Smith & King a Florham Park, New Jersey, warned that a main contractor should understand that there is no “magic words” that guarantee 100% of the problems. However, some provisions can help.

For one, Point to the lowered clausesthat unites a subcontractor in the terms of the main contract. The purpose is to protect any vacuum between what the general contractor and the subts agree to do. When a gap appears, the consequences must be written clearly, including the start of the SUB of the work.

“There should also be strong and express remedies for non-rendering,” he said. “The agreement should, among other things, expressly enable the general contractor to terminate the subcontractor, with the utmost discretion to the general contractor and also allow the general contractor to hire a replacement for the subcontractor.”

Additionally, not only should the subcontractor be required to maintain the appropriate insurance levels with respect to loss exposures, but also the general contractor and others should be added as additional insurance to their policies.

“It is imperative that subcontractors have specific levels of insurance coverage to protect against potential liabilities,” said Lutz. “In addition, compensation clauses protect the GC from claims arising from the actions of the subcontractor. Payment and performance bonds may also be required as another guarantee that the failures of a subcontractor will not lead to a global failure of the project.