The simplest subcontractor agreement sets out all the necessary terms governing the agreement between the subcontractor and the employer or general contractor. You need to ensure any subcontractor agreement you use complies with the laws of your state, so talk to a lawyer in your area if you need legal advice or assistance with a subcontractor agreement.
All subcontractor agreements should identify each party subject to the agreement. The agreement should start by stating the names of each party and identifying them by a name used throughout the rest of the agreement. For example, you can identify the general contractor by stating, "ABC Company, hereafter referred to as ABC." The preamble should also include the date on which the parties enter the agreement.
Employers or general contractors typically hire a subcontractor to perform a set task or group of tasks. The subcontractor agreement should state in as much detail as necessary what the employer expects the subcontractor to do. The work description should include all relevant requirements, such as any time periods involved, deadlines, contingencies and milestones.
Whenever an employer hires a subcontractor, the subcontractor agreement should state in detail the terms of payment. If, for example, the employer agrees to make periodic payment, the agreement should state the dates payments are due and the amount due at each date. The agreement can also include the method of payment and any method of delivery, such as by certified mail or electronic transfer.
All parties subject to the subcontractor agreement should sign and date the agreement at the end of the document. The signature blocks should include the signatures of each signer, their printed names, their positions in the companies whom they represent and the date upon which they sign. You can also sign the agreement before a public notary, and should provide copies of the agreement to each party.
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