Alex Who is responsible for a subcontractor?
By law, the principal (or contractor) is considered vicariously liable for the actions of its agents (subcontractors).
What does it mean to be a subcontractor to a contractor?
In undertaking a contract from a contractor, subcontractors carry out work that the contractor can’t perform, but remains responsible for. A subcontractor provides his or her services under a contract for service. This is a legally binding agreement between a business and a self-employed individual.
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Can a contractor withhold payment from a subcontractor?
In most cases, you can’t legally withhold payment from a subcontractor when the job you’ve been contracted on fails to pay on time or, even worse, doesn’t pay at all. You’re still responsible for making sure your subcontractors are paid.
What are the pros and cons of subcontracting?
There are downsides to taking on subcontracting work, and you’ll need to weigh the pros and cons depending on your situation. As a subcontractor, you might have to work at a lower rate than what you typically charge. Plus, if you’re not credited for your work, you may not be able to include the project in your portfolio.
Can a subcontractor pay an employee less than their wages?
No contractor or subcontractor under a contract which succeeds a contract subject to [the SCA] and under which substantially the same services are furnished, shall pay any service employee under such contract less than the wages and fringe benefits, including accrued wages and fringe benefits,
Can a primary contractor hire a subcontractor?
In some cases, a primary contractor will have a master agreement or contract with their client. If stated in the master agreement, then the independent contractor is able to hire out work to a subcontractor in order to complete the project.
When do you need to create a subcontractor agreement?
Businesses create a subcontractor agreement when they decide to hire an additional independent contractor to help complete work for their client. In this article, we’re going to talk about what subcontractor agreements are, why they’re important, and everything you should include in your contract.
Do you need Workers Comp Insurance for subcontractors?
Different states have different requirements for workers’ compensation programs. For example, California has a mandatory workers’ compensation insurance program for any company with one or more employee. Subcontractors can get workers’ compensation insurance coverage in several ways in California and other states.