A subcontractor agreement is an agreement which specifies the terms of a relationship between a contractor and subcontractor, including the type of work the subcontractor is being hired to perform. Some contractors may use generic legal forms which can be filled in with details for each subcontractor while others may prefer to work with an attorney to draft an agreement which is specific to a given situation. These agreements clearly delineate the expectations and rights of both parties to the contract.
When people hire a contractor for a project, this original contractor is known as the main or prime contractor. The responsibility for the work ultimately lies on the prime contractor, but the contractor can opt to hire subcontractors to perform part of the work. This can include people with special skills who can perform tasks better than the prime contractor along with people who may work more cheaply or quickly than the prime contractor is able to do. For each of these subcontractors, a subcontractor agreement is needed.
The subcontractor agreement describes the type of work someone is being hired for, the specifications and standards which must be met when the work is performed, and the expected time frame for the project. The agreement can get extremely detailed; for example, it can specify paint brands and colors for a painting job, or the type of wiring used for an electrical wiring job. Having all of this information clearly recorded can be critical in the event of a dispute about the work, as one party or the other can use the subcontractor agreement as supporting evidence for a claim.
In the agreement, specifications about compensation are also provided. This may be on an hourly basis or on a stipend, depending on the type of work. Behavior standards may also be covered in the contract and the contract can also describe people who will be working with the subcontractor. When a roofer is hired to put a roof on a new house, for example, both the roofer and the roofing crew are covered in the subcontractor agreement.
Contractors like to create some protections for themselves since they are liable for work performed by subcontractors. In turn, subcontractors also need some legal protections to ensure that they are compensated for their work, that their tools will be protected on the work site, and so forth. The subcontractor agreement creates a legal relationship between these parties and also provides people with legal options in the event of a dispute.