SUBCONTRACTING THE WORK –

TRANSFER THE WORK & TRANSFER THE RISK

What ever we do in our business life, we all appreciate and understand the necessity to secure and grow our financial future. Our big picture goals should be to Secure and grow the future financial stability of our businesses.  When you transfer the work to a "Subcontractor", you usually do not price it with the same cost factors to include the incidents of returns, poor workmanship, unsatisfactory work, AND Lawsuits! 

When you transfer the work, make sure you also transfer the "RISK":

1. Always get a certificate of Insurance from the "subcontractors".
2. Require that they ADD YOU AS AN ADDITIONAL INSURED to their Policy to protect from lawsuits emanating from their workmanship, product or completed operation.
3. When ever possible, you should also incorporate a HOLD HARMLESS and INDEMNIFICATION Agreement which states that they are responsible for their work and if you are brought into a lawsuit because of their workmanship, product or completed operation, they will "protect, indemnify and Hold you harmless."

Presented by:   Richard D. Gaynor, CIC,CRM