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Simple Subcontractor Agreement Templates PDF Free Download
Subcontractor Agreement Template
It can get incredibly confusing when a contractor hires a contractor who then hires another subcontractor to do work as part of a large project.
The risk here is that details are misinterpreted, payments are missed, and work isn’t completed on time.
These are all situations that can completely derail a project.
A subcontractor agreement keeps operations tight, focused, and consistent across all parties involved.
When to use a contractor subcontractor agreement
Depending on the size and scale of your business and projects, you may need to use subcontractor agreements all the time.
Each time you need to outsource services to complete a job, you’ll need a subcontractor agreement.
As a contractor or project manager, you likely have a good feel for your gaps to fulfil a project.
Even before taking on a new client, you may reach out to your network to lock in subtractors to make sure you can complete the project.
Another situation where you’ll likely need a subcontractor agreement is if your current subcontractors are no longer able to perform their work and need a replacement.
Lastly, you may need to use subcontractor agreements to extend contracts if more time is required to complete the job.
How to Hire a Subcontractor
A subcontractor is sought when an individual or company, known as the ‘independent contractor’, cannot perform the duties necessary to complete a project.
This is common in construction when speciality tasks are needed to be completed in order for the entire project to be finalized.
The agreement is between the independent contractor and subcontractor only.
Step 1 – Scope of Work
The scope of work is a term that is used to describe the exact specifications for a task that is to be completed by a subcontractor.
This description will be needed when trying to find a subcontractor for a specific job.
For example, if a roofer is needed the exact type, square feet (SF), materials needed, and the due date must be outlined in the scope of work.
Step 2 – Finding the Subcontractor
After the scope of work is specified, it’s now time for the independent contractor to find a qualified subcontractor to fulfil the job.
The best way is to ask around or go on websites such as Yelp to find reviews.
Once a select number of potential candidates have been found, it’s time to contact them and see if they are interested in the work.
Step 3 – The Bidding Process
*If the independent contractor already has a subcontractor in mind then they can skip this step.
The bidding process is when all potential candidates for the job are given the scope of work and are allowed to submit proposals on how much they will charge if they are given the work.
This can take anywhere from days, weeks, or months depending on the scope of work involved (such as materials needed, number (#) of employees, etc.).
Step 4 – Writing the Agreement
When writing the agreement, the independent contractor and subcontractor will be obligated to come to terms over who is responsible for the following items:
Payment;
Materials;
Equipment;
Transportation/Travel;
Completion Date; and
Insurance (usually General Aggregate)
Before, at the time, or after the agreement has been signed the Subcontractor may have the right to view the Master Contract between the Independent Contractor and the Client (the Client is the party that hired the Independent Contractor).
This is to confirm that the Independent Contractor will have the funds for payment at the end of the project.
Step 5 – Finalization and Payment
After the agreement has been signed the subcontractor will be able to begin work on the date set forth in the agreement.
Depending on the payment schedule outlined, the subcontractor will be paid in full after the work has been completed to the approval of the independent contractor and the client (within industry standards).
Afterwards, the subcontractor’s work is complete and the agreement is no longer valid unless there are any warranties provided.
| Author | – |
| Language | English |
| No. of Pages | 10 |
| PDF Size | 2 MB |
| Category | Form |
| Source/Credits | eforms.com |
Simple Subcontractor Agreement Templates PDF Free Download