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The responsibility of a subcontractor is to complete all tasks assigned by the general contractor correctly and within the specified timeline.
Since a subcontractor doesnt have an agreement directly with the property owner, this contract with another contractor (often a general contractor) is essential for establishing expectations and managing risk. Subcontractors have the right to get paid for their work whether or not they have a written agreement.
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.
A subcontractor is someone who sets their own hours and chooses the work they want to do. They get paid by the contractor for their services, and have to pay their own taxes, provide their own tools and supplies, and do not generally receive health insurance, benefits, or vacation time from an employer.
Subcontractors are individuals with special skills. In construction projects, contractors will hire subcontractors who specialize in different aspects of the project, such as plumbing, electricity, painting, etc.
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In some instances, a subcontractor will have a singular role, and at other times, a subcontractor might have multiple tasks assigned to them. The responsibility of a subcontractor is to complete all tasks assigned by the general contractor correctly and within the specified timeline.
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.
When is a Subcontractor Agreement Needed? A subcontractor agreement is needed any time a second company is brought in to complete a project within the original scope of work on an originating construction contract.
To ensure youre protected from start to finish, always follow these protocols before you hire. Get Proof of Bonding, Licenses, and Insurance. Dont Base Your Decision Solely on Price. Ask for References. Avoid Paying Too Much Upfront. Secure a Written Contract. Be Wary of Pressure and Scare Tactics.
As a very rough rule of thumb, the profit for the subcontractor should lie somewhere between 3-5% of the total job, but there is no fixed rule. Where there is some room in your agreement for negotiation is what you consider the margin for profit and what you might classify as contingency.

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