What is a Subcontractor Agreement?

A subcontractor agreement is a contract between contractors or project managers and subcontractors. This solidifies any agreement between the two parties and assures work. Subcontractors should read the subcontractor agreement and assure specifics to protect themselves from unfair risk.

Many subcontractor agreements layout the exact timeline of the project, scope of work, communication protocols, and even payment. Some agreements specify “pay when paid” or “pay if paid”; these phrases decide when a subcontractor is paid. Other subcontractor agreements are very fair to both the contractor and subcontractor. Depending on the subcontractor agreement, they can benefit subcontractors more than common verbal agreements.

How Does a Subcontractor Agreement Benefit Subcontractors?

While a subcontractor agreement seems like a way for contractors to protect themselves rather than subs, it can actually benefit subcontractors more than contractors. This is a formal written document that lays out the work, timeline, and other factors important to construction. Knowing all of these factors can protect subcontractors because they can prove what the contractor or owner was supposed to do. Subcontractors can prevent some of the more detrimental clauses by reading and not accepting unfair risk in their subcontractor agreement.And the subcontractor agreement is a place for subcontractors to assert their rights and better their business.

Sources: https://esub.com/7-things-you-must-know-before-entering-into-a-subcontractor-agreement/