Unusual for client pay for equipment rental & not contractor?

[Rae Stankowski]

I am not sure this is the right forum. It's not a question about rehabbing or flipping but is a construction question on my raw land-to-be-rental property. Please let me know if there is a better place to post this question!  I am new to this, recently selling a rental duplex that I used to live in, and am moving to short-term rentals on the new property.

I am doing some basic work to set up campsites now and then later build cabins. The contractor I am using prefers clients to pay his fee directly to him, of course, but all other payments-for equipment rental, materials, subcontractors-the client pays directly. The positive for the client, he says, is that there is no padding of these fees (though there could be a kickback to the contractor) but I think he also has a cash flow problem and the benefit to him is he doesn't have to front the money, which may not be atypical in this business.

My concern currently is around equipment rental. If the skid steer is stolen off my property, I am responsible for it because I am the one who rented it, even though it might be the contractor's guys who left the key in it overnight. Am I being unreasonable in expecting him to rent the equipment and me pay for the completed job or to reimburse him after the equipment is returned and there is no longer any liability for it?

I am also concerned about paying directly for building materials. What if his cash flow problem puts him out of business? Now I'm stuck with materials but no finished product. I would hope the next contractor can use those but whose insurance is now covering those materials sitting on my property as I am sourcing a new contractor?

Paying the subcontractors directly makes sense to me because that is for completed services.

What do you think?