Contractors and consultants will generally owe a duty of care in tort to their clients and third parties.
Legal Standards in Different Jurisdictions
In Ontario, Canada, PCL Construction has revenue of $8.4 billion, EllisDon Corporation has revenue of $4.4 billion, and Aecon Group Incorporated has revenue of $3.4 billion.
Indiana law provides that a general contractor does not owe an outright duty of care to an independent contractor, a subcontractor, or a subcontractor’s employees. There are five exceptions to this general rule:
- Where the contract requires intrinsically dangerous work;
- Where the principal is charged with performing the specific duty;
- Where the act will create a nuisance;
- Where the act to be performed will probably cause injury to others unless due precaution is taken;
- Where the act to be performed is illegal.
The Supreme Court of Indiana held that a general contractor can contractually assume a duty to provide a safe work environment requiring oversight of the entire project’s safety.
The general common law principle is that “the employer of an independent contractor is not liable for physical harm caused to another by an act or omission of the contractor or servants.” However, courts may look to factors and exceptions before determining if a duty exists.
An occupier owes an independent contractor a duty to warn of defects that would not be discovered by the contractor despite the exercise of reasonable care.
Responsibilities and Obligations
Safeguarding Work Environments
Risk assessments demonstrate all reasonable steps taken to minimise risk to staff working in complex environments or high risk jurisdictions.
Insurance coverage should be adequate and specific to what is or is not provided.
Contractor vs Independent Contractor
Do independent contractors owe a duty of care? Subcontractor vs Independent contractor is a difference in employment relationship. Independent contractors are employed and paid directly by the employer while subcontractors are employed by an independent contractor and are paid by them. The principal is considered vicariously liable for the actions of its agents (subcontractors).
When a principal engages a contractor to perform work and the contractor controls the system of work, the principal will not owe a duty of care in respect of the method of work. "Reasonably practicable" implies that an organization is not expected to ensure safety but must take feasible measures to do so.
The Role of Contractors
A contractor generally owes a duty of care to avoid physical harm to person or property and to comply with any specific safety requirements. The extent of this duty varies depending on the situation.
Obligations of a Contractor
A contractor must arrange the workforce, tools, equipment, materials, and manage the budget to complete a job. They have obligations like the authority to issue instructions, the obligation to warn, provide information, and notify.
If conducting a business, one has an obligation to take reasonable steps for safety, not just for employees but also for hired contractors, ensuring their safety as well as others.
The contractor is under no obligation to quote a price for the work or service requested. Relationships in the construction industry involve architects, designers, engineers, contractors, and subcontractors, who all work together for the client.