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A general rule of contributory negligence is that a main contractor is not liable for the negligence of its independent subcontractor. There are some exceptions to this rule, including: The main contractor had actual knowledge that the sub-contractor's work had been done in a foreseeably dangerous way and condoned it.
Payment timing The contractor must pay subcontractors within 15 days of being paid by the owner or face potential penalty interest of 1.5 percent per month.
Paying subcontractorsYou usually pay your subcontractors directly. But you can pay them through a third party (such as a relative or debt company) if they ask you to. If you make deductions, you must give the subcontractor a payment and deduction statement within 14 days of the end of each tax month.
The main contractor remains liable for the performance of the main contract, with the result that it is liable to the other party to the main contract for any default in performance by the subcontractor.
A reputable contractor will either cover the damage themselves or be willing to file a claim with their insurance company. This means you won't have to worry about any extra expenses. If they refuse to address the problem, you may need to resolve the issue in small claims court.
At its heart, independent contractor liability is grounded in basic tort (fault) liability principles. The most basic liability principle is that if you are at fault in damaging another's property or causing another to incur costs (e.g. repair costs), you are liable (or financially responsible) for that damage or cost.
YOU MAY CANCEL THIS CONTRACT, WITHOUT ANY PENALTY OR OBLIGATION, WITHIN THREE DAYS AFTER THE DATE THE CONTRACT IS SIGNED. IF YOU CANCEL, ANY PAYMENT MADE BY YOU UNDER THIS CONTRACT WILL BE RETURNED WITHIN TEN DAYS AFTER THE DATE OF RECEIPT BY THE SELLER OF YOUR CANCELLATION NOTICE.
When the subcontractor does not get paid then they have grounds to pursue the contractor for monies owed. This could be in the form of wages or unpaid invoices for services rendered. In the USA, the owner of the property can be held liable for payment under a Mechanics Lien.
If a builder causes physical damage to a neighbouring property then it is possible that both the employer (who owns the property on which the builder is working) and the builder would be directly liable to the owner of the adjourning damaged property.
Both the contractor and their employees are responsible under health and safety law. When you employ contractors you should: ensure that contractors have the right skills and training so they are not posing a risk to their (or anyone in the workplace's) health and safety.