One of the most important things to remember about a subcontract, or any contract in general, is you do not want to breach a contract. But what exactly does this mean?
A breach of contract is failing to do something that you promised you would do, according to the provisions in a contract. In this article, we delve into how daily reports are used and how you could be in breach of contract.
What is a daily report?
The daily report for construction is a written report of any concerns and tells the story of what went on at the project from a specific point of view. This is an excellent tool for both the subcontractor and the general contractor. It creates a detailed timeline of the project. The subcontractor can also raise any issues he sees at the project, whether or not it is related to his scope of work.
The subcontract provisions that require a daily report usually look something like this:
“Subcontractor will submit daily work reports to general contractor, using the ‘Daily Report’ form attached to this Subcontract.”
Or
“Subcontractor is required to submit and have on-site project manager sign daily progress reports. Such reports can be submitted via email or hand delivery at the end of every day.”
What’s in a sample daily report?
The daily report normally includes the following information:
- The project name and address
- The date
- A minor weather report
- The names of the people you had on the project that day and the number of hours each person worked
- A record of any of your materials being delivered to the project on that date
- A log of the work you performed that day
- A section for notes and comments. This is where you would put in writing any concerns you have
- If something arises at the project that will require a change order
- A good daily report will also include pictures
Why is a daily report important?
If your subcontract requires daily reports to be submitted and you do not submit them on time, you are in breach of the contract. Take the time to fill out a daily report every day. Also, make sure you keep a copy of the daily report you submit. Before you sign the contract request, make a copy of the specific daily contract form the general contractor would like you to use.
There are also lot of services or apps that will let you do a daily report electronically. If you want to submit an electronic daily report, ask the general contractor if there is a particular service or app they would prefer that you use.
Even if the subcontract does not require a daily report, it is a good idea to do it for your records. The daily report will help reduce disagreements about the amount of work you have completed when you submit your payment application.
Conclusion
This blog is part of our 2020 Mastering the Subcontract series. Come back each week as we dive deep and pull apart everything you need to know about a subcontract.
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