In the construction industry, main and subcontracting is often used, with the main contractor responsible for the entire project and subcontracting various components to subcontractors. The general contractor remains ultimately responsible for the subcontractors' work, but the contract with the client is not directly affected by the arrangements between the general contractor and subcontractors.
Main Contract
The general contractor is contractually responsible for delivering the entire construction project according to the agreed quality, cost and time schedule. This means that the general contractor is liable for the work it performs itself, as well as for the work of the subcontractors it hires. The general contractor coordinates the entire project, including the scheduling and payment of subcontractors, and ensures that the end result meets the client's requirements.
Subcontract
Subcontractors perform specific parts of the project, such as installing systems, carpentry or painting. Although they do not have a direct contractual relationship with the client, they must meet the quality requirements and time schedule specified in the main contractor's contract. However, problems with subcontractors can affect the general contractor, who remains responsible for the delivery of the entire project.
Risks and disputes
With main and subcontracting, conflicts can arise over the quality of work, delays or payments. It is important that the contracts between main contractor and subcontractors are clear and that proper agreements are made regarding mutual obligations. Problems at the subcontractor, for example, can lead to delays or defects for which the general contractor is ultimately liable.
Need legal advice?
Are you dealing with a construction project involving main and subcontracting? Contact our attorneys for expert advice and guidance on your project. We will help you strengthen your legal position and prevent or resolve potential disputes.