Okay, it’s time to replace your windows and doors for your home, and you’re looking for a window replacement company to do the work for you. Hiring a specialist makes sense since you want someone who really knows what they’re doing. However, the company you’re thinking of hiring has something in their contract that says “You acknowledge that [COMPANY] uses subcontracted labor and you will assume all related subcontractor risks” or something similar.
For us, a subcontractor clause in a contract for window replacement is a huge red flag. Such a big red flag that we never use subcontractors for our window installation work. Why? Because, using labor that isn’t part of our organization introduces some unnecessary risks for our customers.
What is a subcontractor? What are some subcontractor risks that you should know? And why do some window companies use subcontractors? We’ll cover the answers to these questions in the following sections:
What Is a Subcontractor?
A subcontractor is a person or business who works under a contractor or other business, but is not part of that other organization. A lot of people assume that this is specifically for the construction industry, but it can technically be applied to nearly anyone who is on a 1099 form with another company.
In other contexts, they may be called an ‘independent contractor’ instead, though the result is the same. It’s someone doing work for another company without being part of that company.
In the fenestration (i.e., window and door) industry, the use of subcontractors is fairly common. Many businesses use them to handle installation work for them. However, this exposes their customers to certain ‘subcontractor risk’ factors that we feel are best avoided.
5 Common Subcontractor Risks to Beware
So, what are the risks of using subcontractors for your window installation job? It’s one thing to say “subcontractor bad” but why are they such a problem for homeowners who want new windows and doors in Florida?
Here are a few of the subcontractor risks that homeowners face when dealing with companies that use laborers who aren’t actually on their payroll:
Subcontractor Risk 1: Inconsistency of Work
The most commonly-cited complaint from homeowners about subcontracted work is a lack of consistency in the work the subcontractors do. Everything, from the project timelines to the quality of the work, can be variable.
As noted by Wyman Legal Solutions, “Subs juggling multiple jobs may put your project on the back burner.” This leads to delays unless the main contractor has a firm agreement with the subcontractor detailing a set timeline… which not all companies will have. Even when they do, that can actually contribute to another problem: inconsistent quality.
In addition to project delays, subcontractors may lack the expertise needed to ensure a high-quality window installation… or they may be so rushed trying to keep to a tight deadline that they skip steps in the installation, leading to a poorly-installed window that increases the risk of air leaks, water intrusion, and damage to the window opening.
In extreme cases, the work may even go unfinished. You could pay for windows to be installed, only for the subcontractor’s company to go out of business partway through.
As noted by GEP, “Rising input costs and high interest rates have squeezed subcontractor margins. And, with growing uncertainty in the business environment, there is a high risk of subcontractor insolvency.” When that happens, you may be left with an incomplete window installation and no clear idea of when or how your installation will be finished by the main contractor.
Every job using subcontractors is a roll of the dice. You never know if they’re going to be timely, professional, and competent or if they’re going to be behind schedule, rude, and sloppy. In the case of the latter, not only will your window installation be delayed, but you might need to spend more time and money getting the poorly-done first installation corrected or replaced entirely.
When you’re spending thousands on a major home upgrade, you don’t want to take that risk.
Subcontractor Risk 2: Insurance Liability
If an unlicensed and uninsured subcontractor is injured on the job while installing windows on your property, who is responsible for covering their medical bills and other expenses?
As the homeowner, it might be you. As noted by Lytal, Reiter, Smith, Ivey & Fronrath, “Hiring a contractor who does not have workers compensation can result in you paying for their medical bills indefinitely.”
In addition to medical costs, you might not be protected from general liability if something the subcontractor does causes damage to your neighbor’s property. If the subcontractor is uninsured, then paying for those damages will have to come out of your pocket or your homeowner’s insurance, which can drive up your premiums for years afterwards, costing you tens of thousands of dollars over the decades.
This is why, if subcontractors are working on your home, organizations like DAME Legal strongly recommend that you “ask for proof of the contractor’s license, and ensure that the license is still valid. Ask for proof of their insurance and insurance for any subcontractors.” This goes double if the job is suspiciously cheap, as that could indicate that the contractor is cutting corners by forgoing insurance coverage or hasn’t gotten their license.
Subcontractor Risk 3: Cost Overruns
One of the risks of working with a subcontractor, especially an unlicensed one, is that they may slap additional charges onto their initial quote after the fact for “unforeseen” costs from the installation.
This can be for a variety of reasons. First, the subcontractor might not know what’s actually needed to perform the window installation, requiring them to buy more materials than they need or having to pay for labor costs for having people onsite without the right materials or tools to do work… meaning they’re sitting there not doing anything but collecting pay for being “at work.”
The second reason is more malicious in nature. Sometimes, a quote might be made with a lowball number for the contractor to get in the door with a deliberate plan to add more costs later once an agreement has been signed and you’re “locked in” as a customer.
Before signing an agreement with any window contractor, be sure to check their terms & conditions (T&C) to see if there are any clauses about “additional charges” and in what conditions they might be applied.
Subcontractor Risk 4: Safety Risks
One of the biggest risks of subcontractor-based services is the risk of safety incidents that damage your property or worse, harm a worker or a member of your family. Safety risks are a huge issue and using subcontractors for labor can muddy the waters when it comes to determining responsibility for any incidents.
Subcontractors aren’t always properly trained and licensed to perform work. They may do things that increase the risk of injuries or property damage simply because they don’t know how to properly minimize those risks.
For example, in a blog discussing subcontractor risks, Avetta cited an incident where a crane (called Big Blue) collapsed during the construction of a baseball stadium in Milwaukee, Wisconsin. As their article states: “A subcontractor was operating the crane when the collapse killed three workers… The Milwaukee Brewers (the hiring client) were on the hook for $100 million in repairs and significant negative media coverage.”
A lack of appropriate safety measures led to severe consequences for the client who had hired the contractor and, albeit indirectly, the subcontractors. This example is extreme, but it does highlight the kind of safety risks that working with undertrained and underqualified subcontractors poses.
Subcontractor Risk 5: Lack of Accountability
When a subcontractor fails to meet your expectations, who can you hold responsible? While the subcontractor might be at fault, it may be difficult (if not impossible) to get ahold of them to make things right.
But, when you go to the main contractor, they may try to push responsibility onto the subcontractor on the logic that “the subcontractors are the ones who actually did the work” regardless of any responsibility they might have as the main contractor that brought them into the job.
The result? You’ll spend a lot of extra time that you didn’t want or need to waste trying to get someone on the line to fix problems with your window installation. Depending on the nature of the problem, that could lead to further damage to your home.
For example, say a window is incorrectly installed and letting water leak in whenever it rains outside. That moisture intrusion could get into the home and cause damage to your walls, flooring, or furniture. It could also let in pests like ants, termites, or worse.
When you have issues like this, time is of the essence. So, you can’t really afford to have your time wasted on a responsibility runaround.
Why Do Some Companies Use Subcontractors?
Okay, if subcontractors are so prone to issues that impact you as the homeowner, leading to complaints and even having to spend money out-of-pocket on remediation, why do some ‘window installers’ still choose to use them?
The biggest reasons have to do with cutting costs and maximizing how many installation jobs they can do. With non-employees doing labor, the contractor can reduce overhead for things like employee benefits. It also allows them to draw on a large pool of labor that isn’t tied to their business to do jobs over a larger area.
For these companies, it’s just a simple cost/benefit analysis because they don’t care about subcontractor risks for homeowners, they only care about their bottom line. If it helps them save money on each job and get more jobs done, then they’ll do it.
A company that relies heavily on subcontractors is sending a clear message: Their bottom line is more important than your satisfaction, safety, and comfort.
So, they’re free to continue using subcontractors. But you should be free to see the companies that do it and say: “No thanks, I’d rather have the job done right.”
Avoid Subcontractor Risks By Working with a Reliable Window Replacement Company
Looking to avoid the subcontractor risks that lead to delays, unfinished projects, and other liabilities? Get your window replacement from a company that never uses subcontractors on their installations!
Karoly Windows & Doors always uses in-house employees who are on the Karoly payroll. None of our installers are on a 1099, they have a W-2 with benefits. We hold our employees to a high standard, too. They’re trained and equipped to do window installations the right way, every time.
Are you looking for expertly-installed windows that will last you and your family for decades of use? Reach out to Karoly Windows and request a free in-home installation consultation and estimate to get started!
One of our experts will go out to your home to perform an in-person inspection of your windows, take measurements, ask about what you’re looking for in a new window, and provide recommendations based on your needs. Then, they’ll use that information to create an accurate and reliable quote for service.
Don’t get bamboozled by bad subcontractor-based businesses. Get reliable installation work from Tampa Bay’s most trusted team of window installation experts!
