§19.1 Introduction

• Jurisdiction: Washington

§19.1 INTRODUCTION

The scope of most construction projects requires that the entity retained by the owner to construct the overall project, known as the "general" or "prime" contractor, contract with others to perform certain aspects of the work. The entities retained by the general contractor to perform specific aspects of the work are typically referred to as subcontractors.

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(1) The traditional subcontractor relationship

A subcontractor can be defined as one who takes responsibility from the general contractor to construct a specific part of work on the construction project. See Farwest Steel Corp. v. Mainline Metal Works, Inc., 48 Wn.App. 719, 722-23, 741 P.2d 58 (1987) (discussing the definition of subcontractor). In most projects, subcontractors play a significant role.

Construction projects typically are built through what is known as the "design-bid-build" or "design-negotiate-build" process. Through this process, the owner selects and contracts with design professionals, who produce drawings and specifications. Bids are then solicited from prospective general contractors, and the owner then contracts with its selected general contractor. The general contractor then subcontracts all or a portion of the work to subcontractors. The subcontractors may use material suppliers to furnish material needed to construct the project in accordance with the plans and specifications. Subcontractors also may enter into subcontracts with subtier subcontractors. The terms of the general contractor/subcontractor relationship are most commonly set forth, although are not required to be set forth, in a written contract.

Typically, subcontracts are structured so that the general contractor's obligations to the project owner "flow down" and become the responsibility of the subcontractor to the...