Managing a construction project, whether large or small, can be a big job and it comes with many risks and liabilities. One of the most important aspects of any construction project is hiring the right subcontractor. Your commercial insurance will not cover the operations of a subcontractor so it is very important that you manage your risk in this area. There is often a blurred line between who is an employee and who is a subcontractor so it is imperative that you have a clear understanding of the role of each subcontractor.
Tips to consider when hiring a subcontractor:
- Make sure the sub has the necessary insurance for the job and that you receive a certificate of the insurance.
- Ask to be named as an additional insured on the subcontractor’s insurance policy.
- Get copies of all pertinent licenses.
- Ask if the subcontractor is bonded and request that they get a performance bond if the project warrants.
- Make sure your subcontractor meets all of the necessary criteria for being classified as an independent contractor and not an employee.
- Require referrals.
- Always have a written contract that details the scope of work to be performed.
- Upon completion, always perform a walk through to make sure the job was completed correctly and to your satisfaction.
Armstrong has worked with over 150 unique timeshares for more than 30 years with an annual client retention rate of more than 95%. The program’s workers’ compensation and property coverages have been underwritten by the same carriers for 21 years and 10 years respectively. Because of our program management success, there are no coinsurance penalties for property claims. Additionally, the ATA program (if this protection is selected), includes wind coverage even in coastal areas.