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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.
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.
A subcontractor agreement is a contract between a subcontractor and another contractor that defines a specific portion of work on a larger construction project.
Certain critical elements must be contained in the contract in order to provide the contractor with maximum protection. The main issues that should be in a subcontractor agreement are licensing, job and payment, timing, and defense and indemnification.
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.
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Virginia Code 2.2-4354 (4) (5) states that any contract awarded by any state agency shall include an interest clause that obligates the contractor to pay interest to the subcontractor and unless otherwise provided under the terms of this contract, interest shall accrue at the rate of one percent per month.
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.
normally based on a lump-sum bid by the subcontractor to the contractor.

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