Which of the following is a purpose of a general contractor using a sub-contract

Question

Which of the following is a purpose of a general contractor using a sub-contractor?

To make sure the risk exposures of the general contractor are transferred to the general public

To attempt to have some of the general contractor’s risk exposures transferred to the sub-contractor

To attempt to have some of the sub-contractor’s risk exposures transferred to the general public

To make sure the general public’s risk exposures are transferred to the general contractor

To assure that all of the general contractor’s after-loss risks are transferred to the sub-contractor

To make sure the risk exposures of the general contractor are transferred to the general public

To attempt to have some of the general contractor’s risk exposures transferred to the sub-contractor

To attempt to have some of the sub-contractor’s risk exposures transferred to the general public

To make sure the general public’s risk exposures are transferred to the general contractor

To assure that all of the general contractor’s after-loss risks are transferred to the sub-contractor

Explanation / Answer

second option is correct. usually the general contractor transfers some risk to subcontractor of the project. so, he may transfer it later to general public or not, it depends on him. but the general contractor transfers some risk to subcontractor.

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