Foolproof Guide for Subcontractors Working Directly for Owners

Protect What You Have

If you have a contractual relationship with a GC you can’t work directly for the owners of the contract. You’d probably be in violation of your contract with the GC, and it makes for some very confusing situations when unwinding who did what, and who pays. If an owner approaches you on the job and asks you to do something for them directly, you should simply ask them to talk to the general.

Know When You Bring Value

What about working directly for owners after working for them as a subcontractor? If you value the relationship you have with a GC, then it’s a courtesy to check with the GC when an owner asks you to work directly for them. Here again, you could have a contractual obligation to the GC based on previous contracts you’ve done with them. But, even when that’s not the case, being upfront about it can help to safeguard your relationship.

It’s also best to understand the value you bring to a project to avoid taking on work you’re not suited for. A GC brings comprehensive value to a project through its bonding capacity, and broader project management and scheduling skills. A GC can also field a diverse group of craft workers. So, before saying yes to an owner, be sure you can deliver on everything required for the project.

Know What You’re Trying to Do

Choose Owners Wisely

Know Your Weaknesses

An important aspect of going to work directly for owners is understanding contracts. If you’ve only worked for GCs you’ve got a steep learning curve because the owners will most likely use contracts that favor them. The contracts they choose might also be written with language more appropriate for a GC. Involve legal counsel the first time you engage in one of these contracts. That way you can learn the nuances and get valuable advice on the clauses that could pose problems.

In a perfect world, you should be able to move fluidly from working for a GC to working directly for an owner. But, there are consistencies among GCs, and not so many among owners. For instance, most GCs will have safety programs that you can use on your own. Their programs will be unique to the job site, so you don’t have to spend a lot of time adapting your own program. Most GCs will use a similar payment process and will handle delays and claims similarly. But with owners, there can be wide variation in how they administer their projects.

A prudent approach is to start small when deciding to work directly for owners. Take the time to get expert advice where needed, and leave yourself some margin for error when you estimate and schedule.

Working directly for owners can lead to a variety in work, and can even propel you toward a GC role in the future.