Subcontractors sign a contract with another to perform part or all of the obligations of such another’s contract. A subcontractor is hired by a general contractor or the prime contractor to perform a specific task which is a part of the overall project.
Subcontractors should be responsible for their work. They may face liability not only for repair costs or delay damages associated with their work, but also personal injury or property damages that flow from their company’s or employee’s negligence.
Contractual indemnification provisions can create liability far beyond even a subcontractor’s actual negligence. Some states also permit contractual indemnity to apply and operate to protect a party against their own negligence.