Subcontractor Management: The Hidden Costs of Poor Oversight | Risk Matrix Episode 135
Risk Matrix #135: Subcontractor Management: The Hidden Costs of Poor Oversight
“Managing the supply chain is just not a one and done. Are you looking down into the supply chain deep enough to manage the risks that come along with somebody hiring somebody else that you don’t know about?”
In this episode Dr. Martin and James examine the hidden costs of poor subcontractor oversight, what hiring clients and contractors are often missing, and what proactive safety leaders can do to protect their businesses before an incident reveals the gaps.
KEY TAKEAWAYS
- Liability does not always roll downhill. When subcontractor oversight is missing, legal exposure can travel all the way up the chain to the hiring client and beyond.
- Pre-qualification is not the finish line. Training expires, insurance lapses, and personnel changes. Your oversight responsibilities continue throughout the life of the project.
- Indemnification and hold harmless language may not protect you. If your insurance does not cover third party claims from subcontractor employees, paper language means nothing.
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