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Welcome To the Next:

Homeowners Master Class

Let's Look at Some

Subcontractors

Legal Tips

The Legal Relationship

Subcontractors typically work under contract with your general contractor, not directly for you. However, their performance affects your home, your budget, and your liability. Always confirm:

  • They are properly licensed, bonded, and insured in your state.

  • The scope of work is clearly defined in writing.

  • They have signed lien waivers once payment is made, preventing future legal claims against your property.

Contracts and Documentation

Every subcontractor agreement should include:

  • Detailed scope of work (what’s included and excluded)

  • Payment schedule and who issues payments

  • Start and completion dates

  • Warranty terms for labor and materials

  • Change order procedures

  • Insurance and liability coverage

  • Dispute resolution process

🟩 Tip: Ask your contractor or project manager to provide copies of all subcontractor agreements before work begins.


 Legal Protections for Homeowners

To protect yourself:

  • Require proof of insurance and worker’s compensation coverage for every subcontractor.

  • Keep records of all payments (checks, invoices, receipts).

  • Ensure that final lien waivers are collected before final payment.

  • Never pay subcontractors directly unless agreed upon in writing.

Include subcontractor compliance within your main construction contract or as an Exhibit.

 Accountability and Communication

Clear communication helps prevent legal issues later.

  • Maintain a contact list of all subcontractors working on your project.

  • Keep notes, photos, and progress logs in your Digital Home Manual.

Report any safety or performance concerns through your contractor, not directly to subs.

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