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A construction subcontractor agreement defines the relationship between a contractor, who interacts directly with the client, and a subcontractor, tasked with specific duties to facilitate project completion. The video discusses this business relationship, emphasizing essential elements of the agreement required when hiring subcontractors. Contractors, skilled in estimating construction jobs, create a prime contract with the client before engaging various subcontractors for successful project execution. Common types of subcontractors include roofing, concrete, HVAC, and electrical. The agreement should detail coordination regarding timing, responsibilities, and liabilities related to the subcontractor's tasks.