Contracts & ExecutionQuestion 205 of 690

A subcontract should clearly state the scope of work primarily to:

a.Increase the subcontractor's license class
b.Prevent disputes over which tasks the subcontractor must perform and which are extra
c.Eliminate the need for a building permit
d.Set the prevailing wage rate

Explanation

A precise subcontract scope avoids gaps and overlaps, making clear which work is included in the subcontract price and which is extra work requiring a change order, reducing disputes.

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