What action must a contractor take if they hire subcontractors?

The action that a contractor must take if they hire subcontractors is to ensure that those subcontractors are properly licensed and insured. This is critical for several reasons. First, compliance with licensing requirements helps to establish that the subcontractors possess the necessary skills and qualifications to perform their work. In Arizona, subcontractors must hold valid licenses to operate legally in the construction industry, and hiring unlicensed individuals can lead to legal complications for the contractor.

Additionally, requiring proper insurance protects both the contractor and the subcontractor in the event of accidents or damages that may occur during the course of work. It ensures that there is liability coverage in place, safeguarding the contractor from potential financial burdens arising from claims related to the subcontractor's work.

While negotiating payment terms and providing training manuals may be beneficial practices, they do not address the critical legal and protective aspects associated with hiring subcontractors. Daily supervision might be necessary depending on the project's scope, but it is not a universal requirement and does not directly pertain to the legal obligations regarding licensing and insurance. Hence, ensuring that subcontractors are properly licensed and insured is the foundational obligation that contractors must fulfill when engaging subcontracted work.