Sub Contractors and liability

[HRL]

Hi all,
If i was to under take a job doing an electrical installation and was asked by the client if i knew of any plumbers would I become liable for the work if monies were given to me to give to the plumber? (cash)...

A while ago I did an electrical installation, where I introduced a plumber, the plumber never worked fridays but the client paid on Fridays so I collected his money...
Well there was a small flood, caused by the plumber. The client is now holding me liable... I have insurance but not to cover plumbers... His insurance never covered commercial work

My question is, am I liable because I collected his money and handed it to him?

 

[Amp David]

Wouldn't have thought so as you only passed his money on to him and can't see how this makes you responsible for his work.

I'd be giving my insurance co a ring and ask them how they see it.

 

[DiscoDave]

It will depend on your company and what you claim to do. If you are an electrical contractor and you do electrics but you recommended a plumber then no, you pass the money on and it does not go through your books.

If you offer a complete project management solution whereby you organize other trades, the customer pays you and you take your cut then pay them directly, or they invoice you rather than the client then yes you are liable unless you specify in your contract with the other trades that they must have their insurance in place.

 

[HRL]

This was my understanding, the client however believes different.
They refused to pay for £5000 worth of electrical work after this flood happened back in Jan, I started small claims court, and have just received a counterclaim for £90,000 for damages and loss of earnings due to the flood... Yeah i was slightly suprised to say the least...

 

[ezzzekiel]

problem being this will always be a long drawn out situation and chances are if you won you would never see any payment from client - the system sucks

 

[HRL]

I have a small electrical contracting company, established about 3 years, ltd, with a turnover of 115K roughly...
5 would have to shut the company though if I was lumped with a 90K fine debt, cant see it myself though..

 

[Guest123]

Who actually engaged the services of the plumber???

You supplied a contact number, did the client then meet the plumber to discuss works and agree the costs etc???

Or was he subbing to you under your instruction and your terms???

 

[HRL]

No the work was agreed between the client and the plumber, i was taking him to and from as it was in central london, the money was discussed between them two, i never made any money out of it, literally handed it to him from the client.
There was then a flood, maybe caused by the plumber but more than likely caused by the mass of general building work that was going on, but as it was water thr plumber got the blame, everybody was temporarily thrown off site, I requested my outstanding funds, got declined, the client first of all asked me to make a claim on my insurance, asking me to say the problem was my fault... i refused, caused really bad feeling, im left out of pocket again... such is life apparently... let the courts decide.....