“It’s conceivable that a general contractor could, on the one hand, be liable to an owner for damages relating to an unlicensed subcontractor’s work, but on the other hand, would not be able to recover against the subcontractor for the same issues,” Osterkamp says.
“U.S. Pipelining is a confusing decision, and it’s hard to tell what the ultimate implications might be. But at a minimum, it should serve as a caution to general contractors to make sure that their subcontractors are licensed.”