A Subcontractor Agreement or Subcontract Agreement
lets a contractor to hire a third party to perform part of the work.This
sub-contractor agreement is usually employed after a Contractor has
already agreed to a contract with someone else. A subcontractor
(or "sub") is the individual or business organisation that promises to
accept a portion or all of the responsibilities of someone else's
original contract. The subcontractor is employed by a general contractor
to execute specified work as a piece of the broad project. The sub
contract agreement by and large allows for a specialized portion of a
contracted job.Subcontractor Agreements are a very routine kind
of construction agreement. It is critical for both companies to have a
written legal contract which outlines the scope of work, determines fees
and payment, and leaves remedy for non-payment.Contractors employ
sub contractors in order to trim costs or to minimize project risks. This
way the customer gets better service than would have been supplied by the
contractor, with less risk. Many subcontractors are extremely practiced
specialists, and frequently will perform with only a single buidling
contractor company. Subcontract Agreements provide contractors improved
subcontractor management tools.
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Before agreeing to a Subcontractor Agreement, the parties need to make
certaina few decisions and take some specific actions. There are a few
great guidelines to help contractors get the most out of employing a
subcontractor.To start with, you will need to define the range of
the work you will need to have the subcontractor accomplish. For
instance, if the job requires drywall to be installed and then tiled, you
will need two separate subcontractors. Every task requires its own
individual agreement. Of course you could have the same sub do both jobs,
but you will need a separate subcontractor contract to specifically lay
out each job.Second, create a thorough job description. Include
drawings as needed and a thorough listing of the work to be completed.
The more complete the description, the fewer the problems.Get as as
many bids as you cangather. Get hold of subs you already know and work
with, or advertise, or both. Make sure you give each likely subcontractor
a copy of the detailed job description plus drawings you created. In that
way they can give you their truly best bid.Getting The Right
Subcontractor Pick your subcontractor on the quality of his work,
not just price alone. If you choose a subcontracting company that does
below-standard work, you won't be getting such a good deal after all.
Follow up on references. Actually call up the subcontractor's clients and
ask them not only about their general satisfaction, but about specificsas
well. Ask to see a valid insurance certificate. Construction carries
considerable risk. The sub must be properly covered. The sub's insurer
should be able to provide a copy of the policy. You can give
improved service and add value by using subs. A solid Subcontractor
Agreement will ensure that both you and your sub are properly
protected.-----sub contractor agreement