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What contractor liabilities can apply when providing services?

On Behalf of | Jun 12, 2024 | Construction Law |

Construction projects are typically complex, regardless of the extent of work necessary to complete them. As a contractor, you may play a key role overall, especially when implementing standards set by building codes and meeting other requirements. State agencies usually regulate contractors, specifically for safety purposes.

As a contractor, you would need certain qualifications before conducting any work, such as getting necessary licenses or insurance and going through regular inspections. By committing yourself to law-mandate responsibilities, you can keep your record clean, which could prove your trustworthiness as a service provider. Because of your reputation, some people may seek out your help to protect them from costs that stem from defects over time. If you are a contractor, you could be liable for the following based on your licensing and insurance coverage:

  • Appropriate Contractor Licensing — A contractor providing services on a construction project requires proper licensure from the state as well as all subcontractors performing work and/or services on the project. Failure to carry the proper contractor license may subject you to fines, damage claims, as well as jeopardize the project’s schedule or completion.
  • Property damage caused by the project — If the construction damages someone else’s property, your contractor’s insurance could cover it.
  • Defective Workmanship, Deviation from plans or Failure to Keep project on Schedule – As a licensed contractor you are held to a legal standard for your job performance and work. Failure to perform at that standard or deviations from plans or failure to keep the project on schedule could result in contract breaches and damages.
  • Building code requirements — Most large-scale projects go through inspections by specific government authorities. As a licensed contractor, you are responsible for meeting regulations and addressing potential violations.
  • Warranties on labor and supplied materials — Depending on the project’s details, you can sometimes provide a warranty lasting for about a year.

Additionally, other liabilities can also be relevant based on the circumstances.

Understanding requirements and addressing potential claims

Despite meeting all contractor requirements, you cannot totally remove the risk of claims filed by other parties involved in the project. The only way to address this possibility is by preparing appropriately. Other times, you could seek legal counsel as a proactive measure, which can also allow you to clarify specific scenarios and address potential legal issues of the project.