Costing & Contracting - Yukon Housing Corporation

CHAPTER 10 Costing & Contracting3. Some companies pay the supplier directly for all materials provided bytheir tradespersons. An alternative would be to make chequespayable jointly to the tradesperson and their supplier or subcontractor.You must first gain consent from the Contractor should youwish to use this method.INSURANCEContractors and subcontractors who employ workers are required by law to coverthose workers with Workers Compensation. If they fail to do so, WorkersCompensation can collect the insurance premiums from the homeowner. Youshould ask your subtrades for a “Workers Compensation Clearance” prior toadvancing them their final payment. This clearance is a letter from WorkersCompensation stating that their account is paid up to date. This will ensure thatyou are not left owing workers compensation for your subtrades debt.During construction, it is also prudent to obtain liability construction insurance tocover injuries and damage around the job site. This insurance can be provided byyour agent when you obtain fire insurance and will cover visitors falling, childreninjuring themselves on your site, materials blowing into and damaging someoneelse’s property, etc. A small extra cost here can constitute a huge saving if anythingshould happen.Y ukon Housing Corporation|Self-Help Course|Revised 07/2001261