When contractors fail to honor contracts with subcontractors

On Behalf of | Aug 11, 2021 | Business Litigation |

In the construction industry, general contractors in Louisiana and elsewhere depend on subcontractors to achieve job completion. Before a subcontractor begins work on a project, they and the general contractor should sign a contract laying out the subcontractor’s duties, rights and obligations. What happens when general contractors fail to honor written agreements with their subcontractors?

What is in the contract?

Subcontractor agreements tend to cover a lot of ground. Items laid out in these contracts typically include timelines, start and projected end dates, fees and workers’ compensation details. A quality contract will also have an indemnity clause — meaning the subcontractor is only held liable for the subcontractor’s actions, not those of the general contractor.

Subcontractor legal rights

If the general contractor fails to live up to the GC’s end of the agreement, subcontractors have the right to take legal action. They can attempt to negotiate fair settlements through alternative dispute resolution methods, or they can take their cases to court. They may also file liens against the properties on which theyve worked if they have not received promised compensation for their time and expenses.

Get help

Most construction projects would never be completed if it werent for the work of subcontractors. Subcontractors in Louisiana can seek assistance drafting or negotiating contracts that protect them and their interests. They can seek further assistance holding general contractors liable should a breach of contract occur. With legal counsel in their corner, subcontractors can protect themselves and ensure they receive fair and full compensation for the time, effort and resources they put into building projects.