Your Subcontractor Screwed Up. Are You Still On the Hook?

When things go wrong on-site, the blame doesn’t always stop where it should.

You hired a subcontractor. They botched the work or missed deadlines. Now you are being sued—or facing liquidated damages, withheld payments, or a termination threat.

How is that fair? Because the law and your contract may say you’re still liable.

📉 Where Liability Flows: Upstream

As a general contractor or developer, your contract with the owner is usually a direct liability. If your sub creates a defect, delays the job, or causes damage, the owner doesn’t sue them—they sue you.

That’s where indemnity clauses and flow-down provisions come into play.

🔄 Flow-Down Clauses: Pass-Through Terms That Bind

These clauses make your subcontractor bound to the same obligations you have with the owner:

“The Subcontractor shall be bound to the Contractor to the same extent that the Contractor is bound to the Owner.”

That includes timelines, warranties, scope compliance—and sometimes even dispute resolution requirements.

🛡 Indemnity Clauses: Can You Shift the Risk Back?

A well-drafted subcontract will include language like:

“The Subcontractor shall indemnify and hold harmless the Contractor from any and all claims arising out of its work.”

But indemnity clauses aren’t magic. Courts scrutinize them closely—especially if the contractor is partly at fault.

• 🟢 Enforceable: Clear, specific language that covers negligence
• 🔴 Risky: Vague “general” indemnity with no scope defined

📍 What to Do If You’re Being Blamed for a Sub’s Mistake

• Check your contract with the sub: Look for indemnity, insurance, and flow-down provisions
• Notify your sub and their carrier: Get their insurance involved ASAP
• Tender defense if the clause allows: You may be able to force them to defend you
• Avoid admitting fault in emails or meetings—especially with the owner

The Bottom Line

Subcontractor mistakes don’t stay contained. The legal and financial damage can land squarely on your desk.

But if your contracts are drafted right—and you act fast—you can shift the risk and protect your company.

Getting blamed for someone else’s construction failure? Book a 15-minute paid consultation with JDE Law Firm, PLLC. Let’s fix this before it spirals.

🔗 Schedule a Consultation