You have a process for hiring contractors which likely includes a pre-qualification screening of the contractor’s license. After all, the first step to ensuring your contractor is qualified to work on your property is to verify his license.
However, this relatively easy step becomes increasingly more complicated when the contractor you hired to work on your property hires a subcontractor to perform the work.
A subcontractor is not an employee of your hired contractor. As a result, the subcontractor needs to have his own business license because the hired contractor’s license does not include him or any other outside entity.
Why is it important for the subcontractor to have a license?
Hiring a legally licensed contractor minimizes liability to the association because you can rely on higher quality work from a contractor who has processes in place to protect you. When you hire a reliable contractor you minimize the chances of project delays upsetting your residents and safety violations leading to lawsuits, amongst other things.
A licensed contractor is qualified to work on your property because he is required by the contractor’s state license board to abide by and follow a higher standard of work: “Licensed contractors must follow industry policies and standards that promote health, safety, and the general welfare of the public related to construction” (Scott Joseph, The Management Trust).
How do you know if your contractor hired a subcontractor?
Require the written disclosure, in your contract, of all subcontractors. In addition, require the contractor to provide a list of all subcontractors and include in the contract that all subcontractors must be approved by the Management Company or Association. The contractor is legally obligated to disclose this information to you.
How do you verify a subcontractor’s license?The process to verify a subcontractor’s license is identical to verifying your hired contractor’s license. To learn how to verify a contractor's license, click here.
Have more questions? Contact us.
Written by Cari Stark