Subcontractor Contract

After a subcontractor is selected, he or she must sign the contract between the CM/GC and the subcontractor. The provisions of the owner/contractor contract have to be known by the subcontractor. The subcontractor should agree to these terms prior to any award. The risks that the CM/GC must take will be passed along to the subcontractors. In addition, the following provisions should be considered:

1. Are there requirements for performing out-of-sequence work?

2. The subcontractor must have a safety-certified foreman.

3. The subcontractor must have a complete complement of safety equipment.

The subcontractor must attend all tool box meetings.

The subcontractor must protect all workers and the public by placing barricades and warning signs, protecting openings, having flag persons and any other safety enclosures.

The subcontractor's workers who do not adhere to the contractor's safety program will be told to leave the project (after one warning). The subcontractors must comply with the site safety and security plan. The subcontractors must follow the logistics plan for the project. Subcontractors must attend all subcontractor meetings.

Subcontractors must provide additional trades people if the contractor's superintendent determines that the subcontractor is not supplying a sufficient amount of workers.

The subcontractor will be back-charged for work that delayed any other trade or the contractor.

The subcontractor must adhere to the schedule even if overtime work is required (at the subcontractor's expense).

If the baseline schedule changes, then the subcontractor must abide by those changes.

The subcontractor must track all long lead items on a constant basis.

The subcontractor must notify the contractor when overtime work is required.

The subcontractor must not provide substitutions of material or construction procedures unless approved by the contractor/architect/engineer/owner. The subcontractor must not issue a mechanic's lien on the project.

The subcontractor must provide the required insurance limits with additional named insured.

The subcontractor must provide a bonding certificate if required by the contractor.

The subcontractor must obtain all special permits and certifications required by the municipality, drawings, specifications, and state. The subcontractor must set up a fireproof shanty.

The subcontractor must adhere to cleanliness requirements of the area in which the subcontractor is working.

The subcontractor must follow all guidelines for working with other subcontractors in the coordination of all work.

The subcontractor must provide the requested warranty and guarantees at the end of the project.

At the end of the project, the subcontractor must provide the following:

• Attic stock (additional material)

• As-built drawings

• Maintenance manuals

• Certifications

26. The subcontractor must submit any change order work with detailed back up (usually on a time and material basis).

27. Labor rates must be submitted and approved prior to award.

28. Administrative paperwork that may be required for local incentive programs must be submitted in a timely manner.

29. If requested by the CM/GC, subcontractor change order work must be done even if not all the costs have been agreed upon between the parties (usually a requirement in the owner/CM/GC's contract).

30. Any disputes between the subcontractor and the contractor will be resolved by a committee established by the contractor, owner, and architect. The other method is via arbitration or, if management so desires, by litigation.

31. Any liquidated damages imposed by the owner will be prorated to the subcontractor based on a percentage of the total project cost.

32. The subcontractor must have adequate foremen to supervise the workers and maintain quality control on the product installed.

Subcontractors and the Urban Environment

When working in an urban environment the subcontractor has additional obligations that must be considered:

1. Due to the limited amount of space for storage, the subcontractor may have to store material at an off-site location until it is to be installed. The subcontractor may be required to have sufficient additional insurance to protect the product in case of damage.

2. The shanties that are initially installed for tool storage, changing areas, and office may have to be relocated several times as the job progresses. This is necessitated by limited space and the need to complete areas in which the shanties were initially located.

3. The subcontractor is not only responsible for following federal and state codes but it must also abide by the local municipal rules and regulations of the building department and other local departments that may have jurisdiction over the construction process.

4. Insurance limit requirements will have to be increased for potential injuries to the public.

5. Safety requirements will have to be enhanced above and beyond state and OSHA mandated requirements. Some local municipal requirements may be more stringent then the state or OSHA regulations. Besides the safety of the workers, the safety of the public becomes paramount.

6. Coordination of the work with other subcontractors is required especially when working with a multitude of trades in limited areas. The sequence of the subcontractor's work may dictate a change to how equipment or material will be installed. The PM must determine this.

7. Schedules have to be established with the subcontractors for the lifting of their material, either via hoists or by cranes.

8. With limited space in which to work and the potential vastness of the project, subcontractors should be responsible for cleaning up the areas in which they are working.

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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