Sub Contractors

It's good that you're thinking ahead to protect yourself against potential liability. You should consider, though, that this is a fairly complex issue and your proposed language won't do. You'll need to - at the very least - add a provision to your contract in which the GC covenants to defend you, indemnify you, and hold you harmless as against any claim or demand made by any contractor he engages. Also, is he bonded? What are the terms of the bond? You'll need to ensure that he signs individually and on behalf of whatever company he's using, or you'll run the risk of chasing down an empty shell company within months. I'd also insist on an attorneys' fees provision to give the agreement some teeth. That's not the long and short of it - you really ought to to consult with an attorney to develop the proper language for your situation. What is the overall cost of the project?
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Marco Santori is a lawyer in New York City, but he isn't your lawyer, and you should not rely on this post for legal advice. If you have any other questions, feel free to email at MSANTORI@NMLLPLAW.COM

Hofo,

Google waiver of Liens as well. Each time you pay the gc have him sign it. That will protect you as well.

Any reputable GC should be willing to enter into a standard AIA contract http://info.aia.org/aia/contractdoc/index.html?utm_source=google&utm_medium=cpc&utm_content=access%2B100%2Bforms&utm_campaign=contract%2Bdocs&gclid=CI-V1siP0K8CFQTd4AodcTlOIg which clearly stipulates that the GC is responsible for all payments to subs. These contracts have been developed over the years to protect all parties and are deemed an industry standard.

Also check to see that they have an HIC http://www.nyc.gov/html/dob/html/development/hic_faq.shtml

Michael Wood
Director of Interior Design
www.ix-dc.com

Hofo,
ix design and primer gave you good advice. Additionally, under N.Y. State lien law,if you can prove that you paid your G.C. for a given
percentage of a subcontractor's work,then they cannot sue you or lien your property. If the G.C. does not pay them,for any reason.
the sub's only recourse would be to sue the G.C. and you would not be involved in that action.Just be sure to have an accurate paper
trail of payments to the G.C. i.e. cancelled checks and invoices indicating what you are paying for at each requisition.

Thank you everyone! Learn a lot from this site. Hope my next post won't be how to counter sue contractors.