Subcontracting trade work is common practice in the construction industry and managing subcontractor default risk is crucial to ensure the success of projects and partnerships at multiple levels. For general contractors (GC’s), building positive working relationships with subcontractors while protecting their interests is vital. Striking a balance between these goals is key when detailing subcontract terms. Clear and fair, yet effective, subcontract terms can help achieve this, while reducing the likelihood of default and minimizing the potential for disputes. Consulting with legal experts experienced in preparing and reviewing subcontracts is invaluable. That said, below are some important best-practice subcontract clause elements to initially consider. […]