Search
 
Best Practices

Agents increasingly advising contractors to hire bonded subcontractors

Review the vital questions to ask when advising clients that rely on subcontractors.

By James H. Kawiecki | June 03, 2022 at 02:30 AM
Two people shaking hands on a job site, a hard hat and tools are in the foreground. If a subcontractor fails to execute, it can spell disaster for the general contractor who can ultimately be held financially responsible. Couple this with the rising costs of materials, the ongoing supply chain issues and the widespread labor shortage, and contractors could face a variety of risks in today’s market. (Credit: Vittaya_25/Adobe Stock)

With general contractors experiencing pressure on a variety of fronts, independent agents are playing an increasingly important role on the construction site. As general contractors work to complete jobs on schedule, within budget and according to specifications, they rely on subcontractors to do the same. Unfortunately, many subcontractors are having difficulty meeting commitments due to labor and supply shortages, and even the best can make scheduling errors, mismanage payments to employees and vendors, and more.

Given the prevailing market dynamics, independent agents increasingly are advising general contractors to require subcontractors to be bonded — minimizing general contractors’ financial risks and bolstering their risk management programs.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

 

Recommended Stories

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2023 ALM Global, LLC. All Rights Reserved.