Construction projects are becoming increasingly complex and as such multiple companies are used to perform single projects. Often, a large construction company will be the primary contractor on a project but hire a variety of specialized subcontractors. However, the main contracting entity does not like to be held liable for the actions of its many subcontractors. To avoid liability, the prime contractor usually has an agreement with the subcontractors that states that they are responsible for carrying out their portion of the project within the confines of the law.
While those agreements were commonplace, a new California law may make those agreements irrelevant. The cost to the primary contractor may now be greater liability. AB 1897 is the new law that went into effect on January 1, 2015. Under this new law, a primary contractor or client employer will share the civil legal responsibilities for all workers employed through contracts. If you need business law services and you are in the construction or any other industry, please call the business law specialists at Wade Law Group. You can reach us at 888-909-9430 for a free initial consultation.