Free Subcontractor Agreement

A subcontractor agreement is an agreement where the contractor subcontracts the work, which has been given by the client, to another contractor. This is something which has been done by the contractors to bring down the workload or pressure that has been on them.

The subcontractor is employed by the contractor and the client has nothing to do with this. The client at times, because of his busy schedules or other activities, does not even know there is a subcontractor involved in the project.

The following are some of the key facts about a subcontractor agreement:

1. Subcontractor agreement means the subcontractor agrees or gives his consent to take over the project or construction activities from the main contractor either partially or fully.

2. The subcontractor is generally appointed by the contractor to do a very specialized job which the contractor thinks that he might not be able to do or not find time to do because of his other contractual commitments in the same project or some other project which he is doing simultaneously.

3. The agreement should be in a written form which states what is the scope of the subcontractor, the portion of the original project which he would be responsible for, what would be his payments or other monetary benefits and how long will his services be required by the company. The agreement also clears out the consequences or implications of not performing the duties and how would they be penalized for their non-professionalism. This information makes the subcontractor very clear as to what his roles and responsibilities are and lets him concentrate on his work with full commitment and diligence.

4. The other reason for contractors going for subcontractors is that they would be able to perform tasks at a much lower cost and their exposure to risk would also be minimised as these subcontractors are very efficient and work only with one contractor at a time.

5. The contractor should be sure the subcontractor he is hiring is one of the best in the industry and is someone who can do the job with utmost sincerity and credibility. The contractor should ensure the subcontractor he chooses is not someone who is based on price but is someone who is based on the quality of work he can provide. Because if you do not look into all these aspects, then you would probably get inferior work which not only spoil the work but will also spoil the relationship the contractor has with the client, ultimately resulting in the termination of the project.

6. To get the best and the most reliable information about your subcontractors, contact people who have worked with them before, people like contractors or customers. This will give you correct and factual information and give you a detailed insight as to what the subcontractor is capable of and what is something that he just cannot do.  

Download our free subcontractor agreement