Subcontractor Agreements

A subcontractor agreement is a legal document which is made by a contractor, who hires the services of a subcontractor for certain work. Besides giving the contact information of the subcontractor like address and phone number, details about his work, area of expertise, markets where he has a hold, current projects etc are also given. Another thing to be mentioned in the subcontractor agreement is the description of the work that is expected of him for the contract; the scope of the work and the expectations from the subcontractor must be given in the beginning.

A subcontractor is hired by a contractor in order to perform certain tasks as part of the original contract for which he is paid directly by the contractor. Certain points must be kept in mind when formulating a subcontractor agreement:

  • The primary contractor must make it clear that he is the one who will be primarily accountable for the project but at the same time he must also make the particular tasks look attractive to the subcontractor and describe the work and opportunities in details.
  • As the lead contractor, one can pass on some of the risks to the subcontractor. However, it must be evident that the subcontractor also has much to gain from this subcontract.
  • Specify the nature of the work to be done, quality of work expected and what services or goods the subcontractor is expected to deliver.
  • Time is very important and it must be clearly included by when the subcontractor can finish his work.
  • Payment details like amount, time and method of payment must be mentioned so that there is no confusion or conflict later.

When creating a subcontractor agreement, you can also give details about the vendor company and what are the different types of work they have done in the past.

Category: Subcontractor Agreements

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