Advice needed on Contracts

[Snoopy]

At the moment we are having work done via an insurance claim, the contract is with a non preferred contractor of the loss adjusters.

The company that have signed the contract have a sub contractor doing the restoration works, the sub contractor is having problems with the contacted company and we are getting nervous and the subcontactor has said that he is happy to sign a contract confirming that he will complete the works no matter what.....

My question is will this be worth the paper its written on?

[Rachelle]

I think this is a hard one to answer. Any contract should really have somebody pouring over the small print to see if there are any holes in it. At least the intention is good if he's willing to sign a contract - that must be a good sign mustn't it?!

[Hughesy]

The problem you MIGHT have is that the insurance company (who are paying the bill) have a contract with the main contractor. The main contractor then subbied it out. This means that neither the insurance company, nor you have a contract with the subbie at the moment so you are going to stuggle to get paid out if you dont use the main contractor.

If you enter a contract with the subbie to complete works then you may be liable for all the subbies costs unless you check with the insurance company first.