Subcontractor Policy

ZYNEXEL SUBCONTRACTOR POLICY
Effective Date: [05/23/2025]

1. Purpose
This policy establishes the expectations, responsibilities, and legal requirements for all subcontractors working with Zynexel. Our goal is to ensure quality, safety, compliance, and customer satisfaction across all projects.

2. Legal Requirements
All subcontractors must:
	•	Operate a legally registered business in the state of operation.
	•	Provide proof of business registration, tax ID (EIN), and any trade-specific licenses.
	•	Sign a valid subcontractor agreement before starting any work.

3. Insurance Requirements
Subcontractors must maintain the following active insurance policies:
	•	General Liability Insurance ($1,000,000 minimum coverage)
	•	Workers’ Compensation Insurance (if applicable)
	•	Vehicle Insurance (for any vehicle used on Zynexel jobs)
Proof of insurance must be submitted before starting any project and updated upon renewal.

4. Worksite Safety
Subcontractors must:
	•	Follow OSHA and all state/local safety regulations.
	•	Ensure all workers wear appropriate Personal Protective Equipment (PPE).
	•	Maintain a clean and safe worksite at all times.
	•	Report accidents, injuries, or unsafe conditions immediately.
Non-compliance may lead to removal from the project or termination of the agreement.

5. Scope of Work
All work must be performed as outlined in the official scope provided by Zynexel. Any changes must be approved in writing by Zynexel management before execution.

6. Quality Standards
Subcontractors are expected to:
	•	Meet or exceed Zynexel’s quality benchmarks.
	•	Complete work professionally and on schedule.
	•	Correct any deficiencies or defects at no extra cost.

7. Communication
Subcontractors must maintain consistent and professional communication with Zynexel project managers. Daily updates may be required on project status, delays, or concerns.

8. Payment Terms
	•	Invoices must be submitted with supporting documentation (photos, timesheets, materials used).
	•	Standard payment terms are Net 15–30 days from invoice approval.
	•	Zynexel may withhold payment for incomplete, poor-quality, or unauthorized work.

9. Penalties and Fees
	•	Late Completion: $150/day penalty for delays without written approval.
	•	Non-Completion: Up to 25% penalty of total job value if work is abandoned or left incomplete.
	•	Job Cancellation (by subcontractor): $250 fee if canceled with less than 72 hours’ notice.
	•	Rework: Costs to fix defective or rejected work may be deducted from payment.

10. Branding and Representation
Subcontractors may not represent themselves as Zynexel employees or use the brand/logo without written permission.

11. Confidentiality
All subcontractors must keep customer information, pricing, internal communications, and project details strictly confidential. Breach of confidentiality is grounds for termination and legal action.

12. Termination
Zynexel may terminate any subcontractor relationship at any time for:
	•	Policy violations
	•	Safety or legal breaches
	•	Consistent poor performance
	•	Customer complaints
	•	Failure to comply with contract terms

13. Dispute Resolution
In the event of disputes, both parties agree to attempt resolution through direct communication. If unresolved, legal matters will be handled in the jurisdiction of either Washington or Florida, depending on the project location.