Should a homeowner pay your subcontractor directly?

Work it through

You're the contractor. Pick what you'd do, then see how each choice plays out.

1. ADecline. Your contract is with the homeowner for the complete project. You hire, manage, and pay subcontractors. Direct payment creates liability gaps — if something goes wrong with the plumbing, who's responsible?
   Correct

   The prime contractor model exists for a reason. Your contract with the homeowner covers all work, including subcontractors. If the homeowner pays the plumber directly: (1) you lose control of the subcontractor relationship; (2) warranty responsibility becomes unclear; (3) if the plumber does defective work, the homeowner may blame you anyway; (4) COMAR 09.08.01.08 places all duties on the prime contractor. Your markup covers project management, coordination, warranty, and liability. It's earned.

2. BSure — less cash flowing through your books means less hassle
   Risky

   When the homeowner pays the plumber directly, your control over the project diminishes. If the plumber's work is defective, does the homeowner sue you or the plumber? If the plumber doesn't finish, whose problem is it? Under COMAR 09.08.01.08, you're still the prime contractor responsible for all work. But now you can't withhold payment to enforce quality because you're not the one paying. You've given up leverage while keeping all the liability.