Subcontractor's Agreement - Louisiana 2025

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The subcontractors hired by you, the general contractor, are called second-tier contractors. Its not uncommon to have your subcontractors hire additional companies to complete some tasks. Those companies are referred to as third-tier subcontractors.
Major subcontractor means a subcontractor that is awarded a subcontract that equals or exceeds (i) Both the certified cost or pricing data threshold and 10 percent of the value of the contract under which the subcontract is awarded; or. (ii) $55 million.
Both sides need to agree on a start date, end date, and important milestones and due dates to track progress. A well-defined schedule helps manage the project efficiently and ensures that the subcontractor aligns with the projects timeline.
When you are looking at supply chain procurement, there are three types of subcontractor: Domestic Subcontractors. Nominated Subcontractors. Named Subcontractors.
There are three universally recognised types of sub-contractors in the construction industry. These are domestic subcontractors, nominated subcontractors and named subcontractors. However, there exists a thin distinguishing line between the named and the nominated sub-contractor.

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While a contract can be made orally, it is good practice to have a written contract in place before the subcontractor begins work. Contracts are generally bespoke to each project, said Julie, but as a bare minimum must confirm scope of works, price, programme and payment.

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