Subcontractors Legal Documents

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Commonly Asked Questions about Subcontractors Legal Documents

What to include in a subcontractor agreement?

While every project and every business relationship is different, here are some key elements that should be included in a successful subcontractor agreement. Scope of work. Payment terms. Timeline. Confidentiality and non-disclosure. Termination. Liability and indemnification. Intellectual property.

What document is used to ensure that subcontractors have been paid?

A sworn statement tracks the amounts owed and paid to subcontractors and vendors on a project as the project is progressing. It lists the contract amount for each sub or vendor, how much has been billed to date, how much has been paid to date, and the amount remaining on the contract.

What two pieces of additional documentation should be submitted with most applications for payment?

Some documents commonly submitted with pay applications are: Schedule of values. Continuation sheets. Daily reports. Photo documentation. Vendor invoices. Lien waivers. Certified payrolls.

Do you need consent to subcontract?

Depending on the type and dollar amount of your subcontracts, FAR 52.244-2 Subcontracts clause requires a contractor that does not have an approved purchasing system (never been reviewed or is disapproved) to obtain written consent from the Contracting Officer before subcontract award.

What are the payment terms for subcontractors?

Here are the most common contractor payment terms to know. Prepayment. Some contractors request a prepayment (such as 50% of the total fee) to be paid before they begin a job. Payment upon delivery. Net 10, 30, and 60. End of month.

What is a subcontract document?

A subcontractor agreement is a legal document that defines subcontractor responsibilities clearly. It sets forth things like timelines, terms of payment, licensing, insurance coverage, and how disputes are to be handled.

How are subcontractors usually paid?

Subcontractors receive payment once a portion of work is completed, even if there is more scheduled work. These milestones are usually outlined before work begins. Completion payments. Subcontractors receive payment only after all subcontracted work is finished.