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Guideline on General Contractor-Subcontractor Relations

Credit: 10 PDH
Course Fee: $120.00
218 pages

Course Summary:

The primary objectives of every general contractor and subcontractor are to successfully deliver to the owner the specified project safely, on time, at the contract price and achieve a reasonable profit in return for performance of its work. Regardless of personal pride, business philosophy, contractual authority or years of experience, no general contractor can deliver a project successfully without the cooperation of competent subcontractors.

Similarly, no subcontractor, regardless of skill and experience in its specialty, can perform its work successfully without the corresponding measure of cooperation and leadership of a competent general contractor. Both seek a business relationship on which they can depend. Usually, each wants to continue to do business with the other on future projects as well as those at hand. Skill, integrity, fairness, trust, respect, and responsibility will make the contractual relationship-now and in the future-possible, profitable and pleasant.

Learning Objective:

A written contract document usually establishes the framework for the relationship between the general contractor and the subcontractor. To foster cooperation, the subcontract should be fair to both parties and non-adversarial.

Experienced participants in the construction industry know that no architect/engineer can prepare a perfect set of documents, and that no general contractor or subcontractor can perform perfectly. Likewise, contract documents cannot detail every industry practice or anticipate every crisis or situation that will arise at the site.

Mistakes will occur and miscommunications will arise. Most general contractors and subcontractors solve their problems without resorting to litigation. Errors and omissions, when discovered and made known in a timely fashion, can generally be overcome with minimal damage to all concerned. Mistakes that are admitted and corrected immediately are the least costly mistakes.

The purpose of this course is to put the above in a working frame and structure that would keep both side on the schedule.

Review the quiz before studying the course.

Course Content

Course Author: The Associated General Contractors of America

Course 1

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