Bona Fide Sub-contractor
There are two types of sub-contractor. ‘Labour only sub-contractor’ and ‘bona fide sub-contractor’. The first type of sub-contractor is defined within this Glossary under ‘Sub-Contractor (labour only)’.
Bona fide sub-contractors provide a service which includes both the cost of materials and labour. By way of example, a builder who considers himself a bona fide sub-contractor will produce an invoice which includes both labour and materials.
Bona fide sub-contractors are expected to have their own public liability insurance however in the event their policy does not provide sufficient cover; the liability can be passed to their employer. It is therefore important that an employer declare all employees to an insurer so as to be certain that they are appropriately covered.