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What is a subcontractor agreement?

Sub-contractor agreements are formal written documents that outline the terms and scope of work for the sub-contractor in a project. They spell out the duties of the contractors and subcontractors and how they should relate with each other until the project is concluded.

What is an example of sub contract?

As a verb, subcontract means to hire a person or company to complete part of a job. An example might be a construction company thats been employed to build a house deciding to subcontract all the plumbing and electrical work out.

What is scope of work in subcontractor agreement?

Scope of Work The scope of work section of an agreement lays out all of the project details and whats expected from the subcontractor. This will cover things like the name of the project, who the project owner is, and what tasks the subcontractor is responsible for.

Why do I need a subcontractor agreement?

Simply put, a Subcontractor agreement is a risk control strategy which shifts risk from one party to another. With such an agreement, the contractor is protecting themselves from risk derived from the work of their Subs.

How do I write a subcontractor agreement?

How to Write a Subcontractor Contract Define the needs of the project. Finalize the provisions of the agreement, such as the due dates. Clarify the terms for payment. Write a draft of the contract and send it to the subcontractor for her review.

Do you need a contract for subcontractors?

Considerations when hiring a subcontractor To protect your business and the subcontractor you employ, it is important to establish the terms of the work they will complete in a written contract and agree it, before bringing them on board. Such a contract may include: Payment amounts and dates/milestones.

What is the purpose of a subcontractor agreement?

Subcontractor agreements exist to create a contractual relationship between a subcontractor and a general contractor on a construction project. Subcontractor agreements explain the roles and duties of both parties as well as defines each partys obligations while the work is being completed.

What should a subcontractor contract include?

Many subcontractor agreements layout the exact timeline of the project, scope of work, communication protocols, and even payment. Some agreements specify pay when paid or pay if paid; these phrases decide when a subcontractor is paid.

What are the obligations of subcontractors?

A subcontractor does almost the same things a contractor does unless otherwise specified in their contract. That is, they are required to keep their own paperwork documenting their processes and problems, work with little to no supervision, and manage their expenses.

What should be included in a subcontractor agreement?

8 things a subcontractor agreement should include Business information. Include names, businesses names, and contact information for both the subcontractor and the hiring contractor. Scope of work. Payment terms. Change orders. Licensing and insurance coverage. Dispute resolution. Termination clause. Flow-down provisions.

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