General contractor failed to pay a subcontractor

General contractor

A general contractor is a group or individual that contracts with another organization or individual (the owner) for the construction or renovation of a building, road or other structure. A general contractor is defined as such if it is the signatory as the builder of the prime construction contract for the project. A general contractor is responsible for the means and methods to be used in the construction execution of the project in accordance with the contract documents. Said contract documents usually include the contract agreement including budget, the general and special conditions and the plans and specification of the project that are prepared by a design professional. A general contractor usually is responsible for the supplying of all material, labor, equipment, (engineering vehicles and tools) and services necessary for the construction of the project. To do this it is common for the general contractor to subcontract part of the work to other persons and companies that specialize in these types of work. These are called subcontractors.

General contractors conducting work for government agencies are typically referred to as prime contractors. The responsibilities of a prime contractors working under a contract are essentially identical to those outlined above. In many cases, prime contractors will delegate portions of the contract work to subcontractors.

Subcontractor

A subcontractor is an individual or in many cases a business that signs a contract to perform part or all of the obligations of another’s contract.

A subcontractor is hired by a general contractor (or prime contractor) to perform a specific task as part of the overall project. Whilst the most common concept of a subcontractor is in building works and civil engineering, the range of opportunities for subcontractor is much wider and it is possible that the greatest number now operate in the information technology and information sectors of business.

The incentive to hire subcontractors is either to reduce costs or to mitigate project risks. In this way the general contractor receives the same or better service than the general contractor could have provided by itself, at lower overall risk. Many subcontractors do work for the same companies rather than different ones. This allows subcontractors to further specialize their skills.

Ohio Appellate Reports

Unpublished

MASONRY/LAND BUILDERS v. SYDLOWSKI, Unpublished Decision
(12-22-2006) 2006-Ohio-6809 Mainly Masonry/Land Builders,
Inc., Appellant v. Thomas P. Sydlowski, et al., Appellees.
No. OT-06-007. Court of Appeals of Ohio, Sixth District,
Ottawa County. Decided: December 22, 2006.

[EDITOR’S NOTE: This case is unpublished as indicated by the
issuing court.] Trial Court No. 05-CVE-138.

James P. Sammon and Justin D. Harris, for appellant.

David P. Strup and Joseph V. McNamara, for appellees.

DECISION AND JUDGMENT ENTRY

SKOW, J.