What does that mean? If the master contract has the above language, then if the customer is suing you for something the subcontractor has done, then it`s on you. The customer will not sue the subcontractor if they have access to you. Later in this article, you will read how you manage this situation. Again, these are just some of the key clauses and considerations you need to think about when developing your subcontracting agreement. The most important thing to remember is that you don`t want to compromise any of the promises you made to your own customer by briefly selling to a subcontractor. Think ahead, prepare ahead. Practical tip: make the project closing time for your subcontractor in a timely manner for the client. This gives you enough time to check the work and take into account all hiccups or roadblocks. The subcontractor heresafter provides the supplier: its members, collaborators and representatives are free and retains each of the losses, claims, claims, damages, liabilities, costs or expenses that one of them may suffer as a result of (i) the work product or the capacity of this agreement; (ii) any violation of this agreement by subcontractors, its agents, its representatives, associated companies and/or subcontractors, and (iii) the acts or omissions of subcontractors, employees, agents, related companies and/or subcontractors. If the subcontractor indicates that they have their own insurance policy, you are asking for proof in the form of an insurance certificate.
Then you ask your subcontractor to designate you as “additional insured” in the general liability policy. Depending on the name, you get the same protection as your subcontractor. Therefore, if you are sued for damage to the subcontractor`s cause, the subcontractor`s insurance will cover you for the claim. First read your compensation clause with your own client – you want the subcontractor to compensate you for everything you have agreed to compensate the customer, provided your government laws allow it. As mentioned above, some states will not allow claims resulting from your own negligence or intentional misconduct. This part of the contract protects the contractor. If the project is completed, if something goes wrong under the responsibility of a subcontractor, then the contract has the opportunity to recover losses. If the error is attributable to the contractor, the subcontractor is not liable and the contractor has no legal means of recovery.