Hiring a Contractor in México?: Liabilities
With permission of the author:
Liabilities associated with Hiring a contractor in México.
Do not accept a contractor, even with "good references" if you don't have a contractor's agreement or you will be responsible for the contractor's many obligations.
Hire a contractor and inherit his liabilities.
Contracts, social security, liabilities & headaches.
Don’t sign any contracts (even the handshake variety) without fully knowing what you’re getting into.
Often I am called to help in contractual issues such as in construction where a builder either over bills the client, delivers a job with construction defects, poor workmanship, materials, etc. and/or the client is visited by inspectors from the Social Security demanding that payment be made for unreported social security fees plus hefty fines.
Did you not know that a client is co-responsible with the contractor, to cover social security, housing, payroll tax and other federal and state obligations?
Did you not know that an employee hired by a contractor to work in a job at your home or company, if fired, becomes ill and suffers an accident at work may sue you even if he was hired by the contractor if the latter did not have him signed with Social Security?
What happens if a worker hired by the contractor happens to be injured or dies on the job? Guess what? It's on you!
Yes, you may be held responsible for paying up to 730 minimum salaries plus fines, yes it was the contractor's duty to have employees affiliated with the Social Security and cover their dues, housing, and retirement fund, but it was YOUR job to make sure to know the law to protect yourself before signing that contract or sealing that job with a handshake.
What, you did not know that the contractor had to get a license from the city prior to commencing work? Ay ay ay!
A contract will make sure that the contractor sticks to the terms of the agreement, that he is licensed/bonded, and that he demonstrates, prior to signing the contract, that his employees are enrolled with Social Security so that Housing and Retirement issues do not become your responsibility, the same thing with securing building permits and of course, clauses that allow you as the client, to hire someone to supervise the job and to avoid increased costs, and recourse for the client for liabilities that might occur, among other protections.
Demand a factura to deduct the cost of the improvements or else!
Yes, drafting a contract may cost several hundred dollars, but allowing yourself to be preyed upon by one of the many unscrupulous contractors can be so much costly.
Trust but protect yourself beforehand, and have the right contract professionally prepared prior to retaining the services of a contractor!
Burmeister Consulting services will always steer you in the right ✅️ direction