Not knowing the answer to this question may cost you more than you know.
So, you have successfully navigated the tedious processes of getting your building project designed and financed. And you've survived the contractor bid procedure. At long last, you have selected a general contractor in whom you place your confidence for erecting your building on time and under budget. Now the ball is in the GC's court. Right?
Well, maybe not entirely. You may have lingering issues of liability you weren't even aware of.
Your subcontractors and sub-subcontractors (some you may have never heard of) can cripple your project if they use fraudulent payroll schemes or unlawful employment practices. These schemes and practices have become more prevalent with the advent of "labor brokers" -temporary employment intermediaries who supply construction labor to subcontractors.
Many labor brokers are individuals with no particular construction skills or any business acumen, aside from possessing a list of readily available construction workers. Labor brokers are notorious for routinely and systematically violating tax laws, workers' compensation requirements, etc., to line their own pockets.
Their violations could affect you: stop-work orders that shut down your project; increased scrutiny from government investigators; mechanic's lien filings made by unpaid or underpaid workers; or other unwelcome surprises.
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