Avoid Litigation: Contractors Need to Get Contracts in Writing with Subcontractors

Subcontractors are essential to boost the productivity of your company, especially when taking new kinds of contracts. The help of subcontractors can result in some unsuspected expenses if you do not take a keen concern. 

Basing on the Court Statistics Project, a dispute regarding a contract may cost an estimated value of $91,000 if it becomes a lawsuit. To protect your company from such costs, it is important that you request for a written agreement with your contractor every time you get into a contract agreement. 

The following are some of the benefits of acquiring a written contract agreement. 

1. It makes sure that all the involved bodies have accountability insurance 

You can be forced to carry the burden of a messed up part of the project by a contractor. It is wise to ensure that your contractor owns liability insurance so that he can be held responsible for any mistake he makes. 

2. Preventing incomplete projects and missed out timelines 

Reassurance ensures that subcontractors don’t leave the project before completion for any reason. 

3. Insurance requirements specification 

Specify that a Certificate of Liability Insurance is needed when a subcontractor is applying for the contract. 

People like getting into a contract agreement with contractors that they trust, but disagreement can come between you and your contractor leading to a broken business relationship. It is undoubtedly vital for you to get a written agreement with your contractor. 

Depending on the research study that was conducted by the International Association for Contract & Commercial Management, 9% of contracts end up in a significant claim of dispute. When your contract agreement becomes a serious lawsuit, you require to have a written agreement to help you in holding your contractor responsible for his/her mistakes. 

You need to inquire about how to acquire a viable written contract agreement from our Palm Springs litigation attorneys. Do not just rush into securing a contract just because you trust the contractor. Things may fall apart in the process.

shaun-murphy

Shaun Murphy
Partner
Read More

 david

David L. Baron
Partner
Read More

 brent

Brent Clemmer
Partner
Read More

 ketelyan

Katelyn Empey
Associate
Read More

 thomas-slovak

Thomas S. Slovak
Partner
Read More

 john

John Pinkney
Partner
Read More

 vee-sotelo

Vee B. Sotelo
Attorney
Read More

 wendy-new

Wendy S. Dowse
Associate
Read More

 chelsea

Chelsea M. Healey
Associate
Read More

 david-smith

Charles Gallagher
Associate
Read More

 david-smith-2

David Smith
Associate
Read More

 lena

Lena Wade
Of Counsel
Read More