View Full Version : Sub contractor liability
progressivestow
Jun 20, 2012, 12:34 PM
I have been hired by a general contractor as a sub contractor to manufacture and install kitchen and bathroom cabinets on his project. The homeowners are unhappy with the general and now want me to do the cabinets with a new contract with them the homeowners. What is my liability since my contract lies with the general contractor.
tickle
Jun 20, 2012, 12:56 PM
I would have to say this is a conflict of interest. You are already hired by the contractor to do this work for him. Have you signed any agreement, taken a rate of pay etc from him to do the work, because if so, it isn't fair play and you can't work for the homeowner directly unless they fire the general contractor. But then you are looking at some flack from the general contractor for taking over the work.
My input is not from a legal standpoint, just a general knowledge of the circumstances.
Your call.
smearcase
Jun 20, 2012, 07:01 PM
Depends on what your contract says and what general contract law is in your state or region. His contract with the homeowners may have some impact too. They may not be able to "fire" him as easily as they think-he may have some rights for damages and may pursue his rights. Their being unhappy isn't good enough. They may have to prove that he didn't meet the terms of his contract with them, and that can be difficult depending on what his contract with them says. I think that you need to talk to an attorney and show him all of the contract documents. The general may have some rights to the materials also depending on what payments he has made to you.
If the contractor files legal actions against the homeowners, and by the time he does you are working for them through another contract you will be in a very delicate position to put it mildly, as I see it, and very possibly a conflicting position as tickle has said.
Plus, it sounds as if you could end up working alongside another general who has no legal obligation (unless the homeowners very specifically make some requirements in their contract with the new general) to cooperate and coordinate his work with yours.
My experience is in highway/bridge construction contracts. The only times I have seen subs hired by the owner are when the prime (general) contractor has been determined to be in default of his contract. I don't have direct experience in anything exactly like your situation but I seee a lot of potential risks and pitfalls for you.
Don't sign anything unless you are released by the general and financially settled with him and are in agreement on who now has rights to the materials. Does your contract even give you authority to have these kinds of discussions directly with the homeowner without going through the general?
dogdeville
Jun 20, 2012, 07:14 PM
I would have to say this is a conflict of interest. You are already hired by the contractor to do this work for him. Have you signed any agreement, taken a rate of pay etc from him to do the work, because if so, it isnt fair play and yoiu can't work for the homeowner directly unless they fire the general contractor. But then you are looking at some flack from the general contractor for taking over the work.
My input is not from a legal standpoint, just a general knowledge of the circumstances.
Your call.If the contractor don't owe you any money piss on him and work for the home owner if you trust they will pay you. It's their home! But remember you will be on general contractor list
Fr_Chuck
Jun 20, 2012, 07:31 PM
If the contractor don't owe you any money piss on him and work for the home owner if you trust they will pay you. Its their home! But remember you will be on general contractor list
You already have a contract with the general contractor to do this work, The home owner will need to fire the general contractor and also give you a signed release from your agreement with them. If not, you will end up still owing the money for the job to the contractor since it is still his job till you are free from your contract.
Just doing it anyway, is great if you don't mind writing the contractor a large check after you are done.