Subcontractors and Suppliers

Subcontractors and suppliers face risks that could erode anticipated profit margins and even expose them to substantial liability in case of delays or cost overruns. This chapter examines the rights and responsibilities of subcontractors and suppliers relating to construction claims and change orders. The general contractor is well served by communicating with subcontractors regarding the overall schedule and phasing of the work. Asking subcontractors to participate in preparing the critical path method (CPM) schedule, updating the schedule, and coordinating the work, the general contractor fulfills an essential duty, partners with subcontractors, and creates an atmosphere of cooperation. The ConsensusDocs standard subcontract form reflects a growing industry trend toward fostering collaboration through more balanced contract terms and represent a welcome improvement in contractor-subcontractor relations.