What control can a general contractor have over a subcontractor?

Full question:

I do a lot of subcontracting in the concrete industry. I have a general contractor that instists that I, personally, be on site and tells me how many people I need and gets mad because I have other projects going, and really trys to micromanage my company. Is there a law that says what a gerneral can and can't control? I have a company, with several different project going at the same time, to manage, not just one specific job.Thanks,Lonnie

• Category: Contractors
• Subcategory: SubContractors
• Date: 04/07/2025
• State: South Dakota

Answer:

The level of control a general contractor (GC) has over a subcontractor depends on the terms of the contract between them. It's essential to review your contract to see what control the GC retains.

As an independent contractor, you are not an employee, meaning the GC shouldn't have complete control over your work. Legal principles state that a GC can be liable for a subcontractor's actions if they have the right to control how the work is done. This control can be established through:

• A contractual agreement that explicitly grants the GC control.
• Evidence that the GC actually exercised control over how the subcontractor performed their work.

For liability to apply, the GC must have the right to control the means and methods of the subcontractor's work, particularly regarding any negligence that leads to injury. Courts typically determine whether a contract grants this right of control.

According to the Restatement (Second) of Torts §414, if a party hires an independent contractor but retains some control over the work, they may be liable for any harm caused by failing to exercise that control with reasonable care. However, simply having a general right to inspect or suggest changes does not equate to control over the contractor's methods. There must be a significant level of supervision that restricts the contractor's freedom to complete the work in their own way.