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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.
A subcontractor agreement is a legal document that a general contractor uses on a construction project to hire a subcontractor. This contract is a legally binding agreement that defines the terms of a smaller job within the main project to be completed by an entity that is not the GC.
6 Questions to Ask When Hiring Subcontractors in the Construction Industry How will you meet expectations and qualifications? Do you have enough workers to get the job done? Whats your safety record? Can you provide references? Will you sign a contract? Are you properly insured?
Subcontracting refers to the practice of bringing in an outside company or individual to perform specific parts of a contract or project. In most cases, a company subcontracts another business to perform a task that cannot be handled internally.
If you are still unsure, you also may wish to check the contractor out with your local building department, trade association or union, consumer protection agency, consumer fraud unit, and the Better Business Bureau.
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Subcontract package. A package of work (part of the main contract works) that is. open to tenders from potential subcontractors.
In the state of West Virginia, work performed under $2,500 (materials and labor, total contract) does not require a contractor license. However: Electrical Contractors License - if a project exceeds $1,000.
Virginia: All persons engaging in contracting work must be licensed. A general contractor can be subject to sanctions and fines for hiring an unlicensed subcontractor. In cases of fraud or misrepresentation, a contractor may also face criminal prosecution.
Anyone performing or managing a project or removing, repairing, or improving a project valued in excess of $1,000 requires a license. Tradesmen like plumbers, electricians, HVAC technicians, gas fitters, and other typical subcontractors must also carry a state-issued license.
To find subcontractors, GCs and PMs usually go to sites like BuildingConnected, AGC, BIA, and other trade organizations. Once there, a GC will put out a Request for Proposal (RFP). RFPs list out important project details, like the skills needed, objectives, and the project timeline.

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