Working as a Subcontractor: Rules to Take into Account and Regulations to Meet

subcontractors rules

Performing as a subcontractor means taking part in the construction processes as the true party with a full range of rights but requirements and obligations too. If you are going to hit the subs’ arena locally, be ready to find out more about all the rules and regulations to work safely and in the absolutely result-driven mode. One of the most fundamental rules to take into consideration is a set of protections for subcontractors provided by the general contractor.

If you are not interested in conflicts concerning your scheduling and payment rights, discuss everything before signing the contract. Check the agreement attentively before any on-site works start. If you have disagreements at the very beginning of the project, just specify your needs and be sure that your payment rights are not neglected. Most GCs use construction estimating software, so costing and planned spending items for subs are usually presented in default.

If you are a newcomer in the context of subcontracting work, it is recommended to attract an attorney for the first projects. They will help you with all the laws to understand. Legal advice is a must if you are not sure about your rights and protections.

Cash Flow Regulations

It is worth noting that the safest way to stay a fully protected subcontractor is to cooperate with general contractors who obtain automated costing systems. This way any scheduling in the context of payments will be handled through software algorithms without manual work. Most human-factor errors are excluded for the estimating and bidding pre-construction stages.

Nevertheless, subs should keep track of the legal agreement items concerning their payment rights and protections. Project bidding software simplifies financial forecasts for GCs but does not exclude the risk of some imperfections. Be responsible for the cash flows, and the way the customer meets all the payrolls. These obligations are rather sensitive but among the most essential regulations of the financial responsibilities in the business relations between general contractors and subcontractors.

Operational Scheduling

The task of the subcontractor is to plan all the operations on the site properly. All the deadline terms are managed by subs first. Of course, the general contractor can specify his/her own scheduling expectations. Nevertheless, the task of the subcontractor is to specify the timing to perform the work timely and complete all the tasks without delays.

That is why most agreements together with the pre-construction stage are negotiated by the parties. The contract can contain other timing norms if the GC is open for negotiations and for flexible operational scheduling in general.

Labor Market Regulations

The unemployment rates stay still high. But general contractors face fewer and fewer gaps in the context of hired workers. Subcontractors got more rights and fixed responsibilities in comparison with business relationships and agreements signed in the 19th century. For example, more and more cases, accidents, and situations are covered by insurance. Additionally, there are legal subs’ rights in the following spheres:

  • Automation – subcontractors can count on software and hardware that simplify their operational tasks and save time. The GC should provide only high-quality on-site machinery and tools for construction and finishing missions (roofers, installers, insulators, etc.).
  • Labor laws – all the DOL regulations should be met by the general contractor. Remember that the Department of Labor monitors all the overrun cases, and obtains all necessary labor protections according to the workweeks, wages, etc.
  • Contract regulations – the agreement should define the scope of the planned work concerning the responsibility of the subcontractor. Additionally, the contract between the subs and the GC depends on the flow-through clause. Remember that the original agreement contains all the critically important items for workers and the client like insurance policies, payment rights, inspection terms, etc.

To sum up, remember about the legal help if you are not sure about some rules and regulations presented in the agreement. Additionally, try to establish transparent relations with the GC from the very beginning. High-level communication is your chance to avoid hidden pitfalls in the contract.




Other Articles