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Home » Five Things to Keep Out of Your Subcontract Agreement

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Five Things to Keep Out of Your Subcontract Agreement

June 1, 2004
John Alfs
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Unreasonable subcontract terms should not be agreed to and you should be on the lookout for general contractors who try to force them upon you.

Roofing contractors often serve as subcontractors for general contractors or project managers under subcontract agreements. Unfortunately, as a subcontractor, you do not always have the ability to have much say in the form of subcontract agreement adopted by the general contractor. Depending on economic and market conditions, general contractors may have the ability to tell subcontractors who want to renegotiate agreement terms to "take it or leave it." This is a reality of the market place. However, unreasonable subcontract terms should not be agreed to and you should be on the lookout for general contractors who try to force them upon you. You should be especially aware of general contractors with whom you have no prior business relationship and, if the general contractor is unwilling to change unreasonable terms, it is usually a good indication that it is a company with whom you do not want to do business. There are countless ways in which general contractors slant their agreements to their advantage. However, there are common contract terms that can be particularly hazardous to subcontractors such as those that are described below.

If a subcontractor is devoting significant manpower and resources to a project, an unexcused delay can be critical. As a subcontractor, you should do your best to limit the delay provision so that delays beyond the subcontractor's control are compensated.

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