$2.$ Case Study $$ Spray Paint & Open Flame

A new home builder hires a drywall firm, but fails to ensure that this subcontractor has a functioning accident prevention program. The subcontractor fails to properly train his workers or to provide fall prevention instruction or equipment. The builder$$s supervisor does not notice the unsafe activities or infractions. One of the subcontractor$$s workers falls through an unprotected opening and is critically injured.

The government agency responsible for safety lays charges and obtains a conviction against the subcontractor$$s supervisor, the subcontractor, the project supervisor and the builder. The fines range from $$10,000$ to $$60,000.$ Since the builder did not ensure the opening was properly protected, the safety agency transfers the $$100,000$ cost of claims from the drywall subcontractor$$s account to the builder$$s $-$ resulting in a very significant reduction in the builder$$s rebate over each of the next two years.

Please discuss the above scenario and present your answers to the following questions:

i$)$ What steps could the builder have taken to avoid this situation?

ii$)$ What contractual provisions would have been helpful?

iii$)$ Who will end up paying?