Making a Subcontract
Whether you’re providing construction services for a particular project or retained as an on-call provider, your projects and assignments are defined by a formal contract with a client. This legally binding document usually includes the following:
- The type of contract
- The scope of work to be done
- Project risk and ownership
- Legal obligations of the owner or client and the contractor
- Duties of all parties
- Insurance and bond requirements
- Terms and conditions of project acceptance
- Terms of payment
- Warranty terms
- Subcontractor agreement details
Just as you have a contractual agreement with a client, a subcontractor agreement defines the work, terms and conditions of another firm providing services to yours. It is incumbent on you as the prime or main contractor to clearly outline the terms of other companies’ services to make sure they’re appropriately compensated for services rendered as defined and signed in your agreement.