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What is a sub agreement?

: a contract between a party to an original contract and a third party especially : one to provide all or a specified part of the work or materials required in the original contract.

What is the downside to subcontracting?

Disadvantages of Subcontracting Lack of staff development. Contractors will use more time researching potential subcontractors. Contractors will lose their control over the timeliness and quality of work. Poor performance quality.

What does being a subcontractor mean?

Primary tabs. A subcontractor is a person or entity that has been awarded by the general contractor the performance of part of the work or services of an existing contract entered between the general contractor and the (original) contracting party.

What is the responsibility of a subcontractor?

8 things a subcontractor agreement should include Business information. Include names, businesses names, and contact information for both the subcontractor and the hiring contractor. ... Scope of work. ... Payment terms. ... Change orders. ... Licensing and insurance coverage. ... Dispute resolution. ... Termination clause. ... Flow-down provisions.

What is the purpose of a subcontractor?

A subcontractor is a business or a person that undertakes work for a company as part of a larger project. In undertaking a contract from a contractor, subcontractors carry out work that the contractor can't perform, but remains responsible for. A subcontractor provides his or her services under a contract for service.

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