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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.
Typically, a contractor works under a contractual agreement to provide services, labor or materials to complete a project. Subcontractors are businesses or individuals that carry out work for a contractor as part of the larger contracted project.
Landscaping services rendered to new construction, residential real estate, and industrial, commercial or income-producing property are subject to sales and use tax. Excavating and rough grading services rendered to new construction are not taxable.
There are no additional sales taxes imposed by local jurisdictions in Connecticut. The statewide rate of 6.35% applies to the retail sale, lease, or rental of most goods and taxable services.
Contractor interview questions How long have you been in business? Do you have a contracting license and proper insurance? Will you obtain the permits and set up the inspections required? Whats the timeline for the project? What does the payment schedule look like? Is there a dedicated team working on my project?
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While not considered real estate, such work will be taxable under CT sales tax law as repairs to personal property.
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.
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.
In general, installation services are not taxable when performed to owner-occupied residential property and new construction. Repair and maintenance services in general are taxed to the consumer on both labor and parts.
Contractor Service Charge to Customer ∎ Contractor must charge sales tax on the service portion of the job, if the service is taxable.

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