Golden Rule of Contractor-Subcontractor Relations

Abstract

Relations between subcontractors and general contractors (GCs) are often strained and prone to disputes due to a poor sense of fairness and a misunderstanding of each others' needs. More often, however, disagreements arise due to a lack of knowledge of the GCs' general and special conditions or their planned construction methods and schedule. General contractors with a reputation for fairness and consideration of their subs' needs tend to attract quality subs and more competitive sub prices. Disputes may be avoided, and time saved in negotiating subcontracts, if subs are made aware at the time of preparing their proposals of all the conditions under which they will work during the execution of the project. In order to coordinate effectively a sub's work with that of other subs the GC must know each sub's work in detail. Close communication between a GC's field supervisors and subs on the site, and regularly scheduled meetings with all subs, are essential. Prompt payment of progress billings is as importan...