If you bring in outside help to complete work for one of your customers and something goes wrong, who will be in the firing line? And what steps can you take to protect yourself?
A helping hand
If you’ve landed a contract but don’t have the resources or expertise to complete the work yourself, it’s common practice to use a sub-contractor to help out. But will you and your company be liable for their mistakes if things don’t go as planned?
Contractual problems
If you don’t supply the goods or services you’re being paid for in accordance with the terms and conditions of sale, you’ll be on the hook to sort out the problem, financial or otherwise, even if it was a sub-contractor which caused it.
Trap. Not having a sale contractdoesn’t mean you escape. Even if there’s no written or oral agreement, there’s an implied obligation to ensure that the job is completed to a reasonable standard.
Passing the buck
If your customer makes a claim against you because of, say, faulty workmanship, but this was down to the sub-contractor you used, you can, in turn, make a claim against them.