The Contractor Subcontractor Relationship – An Understanding

Minimum Bottom Line Profit Should Average 9.4%!
For Trades & Subcontractors, at Least 11%
After Income Taxes Are Paid!

With construction, no other mutual bond has such a high dependency on each other as the contractor subcontractor relationship. If the relationship is developed properly and with a mutual understanding, it can be very successful. If poorly created and lacking cohesion, the relationship devolves into a tit for tat fight and often ends up in the legal system costing the contractor excessive sums of money to correct.

This article introduces both parties to the relationship and identifies the guides you towards the next article in this series which covers the proper steps to take in order to create a successful contractor subcontractor relationship. To appreciate this unique bond, both parties must first understand why they need each other. Secondly, the two parties need to appreciate the nature of the risk reward aspect of their relationship. This is often the contentious part of the contractor subcontractor relationship and it is the most likely reason the two parties divorce each other in their relationship. Finally, there is a proper way to create the contractor subcontractor relationship and this section points the reader in the right direction. Other articles on this site go into more detail related to these steps and I encourage you to read them.

Contractor Subcontractor Relationship – The Bonds That Tie Them Together

There is one driving force in construction, the end user wants it now! Therefore,

© 2018 – 2022, David J Hoare MSA. All rights reserved.

error: Content is protected !!