Subcontractor Agreement Details And Sample
Subcontractor agreement is a contract between general contractor and subcontractor. The agreement usually includes the scope of job the subcontractor will do, who provides materials to complete the job, how much the subcontractor will be paid, & how long the work will take to complete.
How to Write a Subcontractor Agreement
There are some rules in writing a subcontractor agreement template. First of all, you have to identify both parties that include the subcontractor & the general contractor. You should provide their names and their contact info like phone numbers and address.
Besides, it is also important to include the legal status of both parties. Then, you also need to explain the project and reference. In addition, you can also define the relationship of both parties. If the subcontractor will bring other workers, include it in the contract.
Secondly, you should define the scope of job. Describe the job what the subcontractor must do as detailed and specific as possible. If the owner of property is not satisfied with the subcontractor’s work, it should be clear about the solution. It must be stated clearly in the contract.
Next, you need to list the rights & duties of the subcontractor and the general contractor. So, the inspections and responsibility of each party must be included in the contract. It will be better if you provide this information in form of list to make it easier to understand.
Then, you also have to make work completion & payment schedule. Here, you have to put the work of subcontractor into the context of the general contactor’s schedule. Besides that, you also must provide the deadlines for every phase of work in the contract.
Subcontractor agreement form should also include the warranty as well as indemnity clauses. Typically, the subcontractor warrants his or her work against defects in craftsmanship or material for several years and also holds the general contractor harmless from losses or claims related to the work.
You also need to explain the method the contract can be terminated. The subcontractor agreement typically can be terminated by general contractor for same reasons the owner can terminate the prime or master contract. Do not forget to include the contract’s effective dates.
If there are some miscellaneous provisions, you also have to include them. People also call it as boilerplate provisions. It covers problems like what the state’s law governs the agreement & where a lawsuit for breach of agreement can be filed.
Lastly, close the agreement or contract with signature. Both parties must sign the agreement to make it valid and legal. So, you need to dedicate a space for the signatures of both parties. The signatures must be handwritten and official.
Subcontractor agreement involves 2 parties that include a subcontractor & a general contractor. So, the agreement must be negotiated well. Time estimation is very vital so that it must be planned properly to avoid loss. One more, you also should discuss the methods & terms of payment in reaching agreement.