Chad J. Caplan, Construction & Public Contracts attorney, discussed the critical role of well-drafted subcontracts in mitigating risks associated with underperforming subcontractors. He notes that contracts should clearly state that “time is of the essence,” incorporate provisions for reasonable schedule adjustments, and include clauses for liquidated damages tied to subcontractor fault. Such contractual safeguards are essential for general contractors to maintain leverage and protect project timelines and quality standards.
He also underscored the necessity of proactive legal measures in subcontractor management. By establishing clear expectations and consequences within the contract, general contractors can better navigate the challenges posed by labor shortages and ensure project success.
