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Concrete Subcontractor Agreement
A concrete subcontractor agreement is between a construction company or foreman that is operating a job site and a concrete specialist (the “subcontractor”).
The subcontractor may also act as the supplier, if not, they will coordinate with the supplier and ensure the concrete is up to grade.
Upon the arrival of the concrete, the subcontractor will guide and place the concrete in the areas as directed.
After the pouring process is complete, unless there are other obligations, the subcontractor’s duties will be complete, and should be paid for their services.
Types of Concrete Subcontractors
Driveway / Paving
Flooring
Repair / Maintenance
Staining
Polishing
New Construction
Resurfacing
8 things a subcontractor agreement should include
Subcontractor agreements don’t need to be overly complicated or lengthy, but they do need to include some basic information that helps ensure clear expectations about project scope, potential disputes, and eventual payment.
Below, we’ve listed eight pieces of information that are included in most subcontractor agreements.
1. Business information
Include names, business names, and contact information for both the subcontractor and the hiring contractor.
Why it matters: Personal and contact information can help increase transparency and improve communication from the outset of a project.
2. Scope of work
Provide a scope of work that details all of the subcontractor’s work, including any materials or equipment that the subcontractor must provide to the project.
This section of the contract will likely include some type of project schedule—including the effective date of the contract, the date work should start, and the expected completion date.
Why it matters: A well-defined scope of work and schedule lays out clear expectations for both the hiring contractor and the subcontractor.
3. Payment terms
Define the terms of payment for the contract, often an hourly rate or a flat fee.
Different types of subcontractor agreements may have differing approaches to payment terms, but accuracy and transparency are especially important for this part of the contract.
For instance, the contract should define how progress payments will be made and how subcontractors submit payment applications.
Why it matters: Clear terms about payment offer protection for all parties involved in the subcontractor agreement.
4. Change orders
Explain how subcontractors should handle change orders, including how to request a change order and what the approval process entails.
With a proper change order process in place, subcontractors will have a more clearly defined scope of work when the need for changes arises.
Why it matters: Change orders are a fact of life with construction, so defining the process ensures that subcontractors get the job done right and don’t have to do extra work for free.
5. Licensing and insurance coverage
Describe insurance and licensing requirements that subcontractors need to meet in order to qualify for the project.
Generally, this would mean that subcontractors must hold a valid contractor license in the state.
Additionally, most subcontractors should already have insurance, but defining the specific requirements is important.
Why it matters: Performing work without the proper license or insurance can jeopardize lien rights, so subcontractors can’t simply rely on the contract requirements here.
They must also follow the statutory requirements for the work they are performing.
6. Dispute resolution
Detail the process for resolving construction claims and disputes.
For example, many contracts include a written notice requirement as well as a procedure to resolve claims.
Furthermore, some contracts specify processes for arbitration or mediation under an alternative dispute resolution (ADR) clause.
Why it matters: Conflicts and disputes arise in many construction jobs, even when everyone has the best intentions.
Well-defined protocols for resolving disputes are crucial for a successful job.
7. Termination clause
Termination clauses outline the reasons, notice requirements, and duties for the termination of the agreement.
The termination provisions can include a clause for termination for cause, termination for convenience, or both.
Why it matters: Everyone involved in a subcontractor agreement needs a clear understanding of how and why the agreement can be terminated.
8. flow-down provisions
Supply details about flow-down provisions, which are used to incorporate some or all of the rights and responsibilities from the prime contract.
Whenever a subcontractor agreement includes flow-dow provisions, the subcontractor should also get a copy of the prime contract.
Author | – |
Language | English |
No. of Pages | 10 |
PDF Size | 2 MB |
Category | Form |
Source/Credits | eforms.com |
Sample Construction Subcontract PDF Free Download