In exchange for the services provided by the subcontractor, a contractor agrees in writing to pay a specific amount of money within a certain period of time. The agreement also describes at length a subcontractor’s obligations.With how complicated construction projects can be, subcontractors are ...
There is a lot that goes into hiring a qualified subcontractor to get the job done because hiring the wrong subcontractor can create a variety of consequences. As a matter of fact, according to the Construction Project Managers that we surveyed in our articleHow To Avoid Construction Schedule De...
Retainage is a common payment tactic in the construction industry, where a portion of payment is essentially held hostage until the work is properly finished. Also called retention, it’s primarily used as a motivational tool to ensure that the contractor or subcontractor will satisfy their ...
On top of all this, theconstruction payment chaincan make it difficult for the owner of a property to identify everyone who has performed work on a project. Conversely, a subcontractor, sub-subcontractor, laborer or supplier will often have little to no interaction with the owner of a project...
Unreliable commitments are a common pain point in construction because of the variety of stakeholders and contractors needed for large projects. A delay from one subcontractor can create costly delays for everyone, which is a risk that has to be mitigated early on to minimize such waste. Amanda ...
The contractor payment schedule is how contractors in construction projects are paid. It’s unusual for contractors to get a payment for their work in one lump sum. Therefore, a construction payment schedule shows how they receive compensation for their work over the project’s life cycle. This...
These clauses typically mean that the subcontractor will not look to the general contractor for payment until the owner has paid the general contractor. “[Those contracts] expressly shift the risk of payment from the GC to the owner, so, as a subcontractor, you have an interest in making ...
In the recent Arcadis report, the 2nd most common cause of reported disputes was, "owner/contractor/subcontractor failing to understand and/or comply with its contractual obligations." Since contracts do not cover every eventuality, problems may arise in areas where the contract remains silent. When...
This clause used a formula to calculate escalation for petroleum used in asphalt. When petroleum prices increased, the subcontractor submitted a change order to the general contractor, successfully adjusting the contract price to reflect the new costs. This demonstrates how clear and specific escalation...
such as construction and information technology. Subcontractors are hired by the project's general contractor, who continues to have overall responsibility for project completion and execution within its stipulated parameters and deadlines. This can create a subcontractor risk forcompliance. ...