Darryl S. Beckman

Listed below are 10 rules for managing subcontractors. Ignoring these rules could set your company up for a fall—in the eyes of your customers and the law.

1. Make sure there is an executed contractfor every subcontractor before the season starts. A subcontractor who refuses to sign a contract will not work for my clients. Joe C. may do a fantastic job, but you are asking for trouble if you allow him to work without a contract.

2. Require proof of insurance from every subcontractor. Do not allow a subcontractor to work for you unless you are satisfied the subcontractor is covered by an adequate policy of insurance. Again, a subcontractor who does not submit proof of insurance does not work for my clients. Harry M. has worked for your company for years, is reliable and does a great job. If he does not have insurance, none of that matters, since any claim becomes your responsibility.

3. Meet with your subcontractors before the winter season. Your subcontractors must know what you expect, and there is no better opportunity to convey your expectations than through a meeting. Depending on the number of subcontractors you use, consider meeting with a group at your offices or meeting with individual subcontractors at various job locations. This may take some time, but during the summer months, it is time well-spent. There is no substitute for meeting with the people working for you, just as there is no substitute for meeting with your customers. Do this every year!

4. Subcontractors must understand the scope of their work. You are responsible for making your subcontractors aware of when they are to begin services, the services that are to be provided, and any problems at the job site. You contracted with the owner of the premises, and it is absolutely no defense to a claim to state your subcontractor did not do his job. Your subcontractor must have a complete understanding of the property owner's or management company's expectations, or you risk losing your customer. The property owner will not renew your contract if her customers can't get into her bar, no matter whose fault it is that the lot was not cleared.

5. Require documentation from subcontractors. Subcontractors must understand the documentation you require them to complete. It must be submitted timely, and your contract should state the subcontractor will not be paid without submission of required documentation. Legal cases are almost always brought years after services were performed. If you cannot document the services provided by your subcontractor, your defense is severely compromised because your opposition will argue a service was not performed if you cannot document the service.

6. Your subcontractor must be qualified. A subcontractor who does not do the job will lose a customer for you. There is never an excuse that the subcontractor did not show up, nor is there an excuse that the subcontractor did not understand what was required. During a storm event, you must be in contact with your subcontractors, and you must be able to rely upon your subcontractors to do a competent, complete and professional job. Pete H. may have done a great job for you at one time, but if he now spends more time slacking off than pushing snow, it may be time for a new subcontractor.

7. Have multiple methods of contact for the subcontractor, so he can be reached at all times. You need to be able to discuss upcoming storms, plans of action and any problems at the location. You also need to be able to discuss progress of clearing operations, and any other issues specific to the job site. However, from a litigation perspective, you do not want or need complete and total control over the services performed by your subcontractor.