Frequently Asked Questions

What is a subcontractor agreement and what does it typically include?

A subcontractor agreement is a legal document that outlines the terms and conditions between a contractor and a subcontractor. This agreement is similar to the one signed between the company and the contractor, but in this case, it's between the contractor and the subcontractor. The contractor manages all of their subcontractors, meaning subcontractors have limited interaction with the company that hired the contractor. The subcontractor agreement typically includes details such as the specific services or products the subcontractor is providing, the payment for these contributions, and any necessary warranties. Other elements that could be included are insurance clauses, default clauses, change orders, and indemnity clauses. Subcontractor agreements are most commonly used in construction projects, where the primary contractor is responsible for the entire project, including hiring subcontractors for specific parts of the project. However, this arrangement can be used in any project beyond construction. For instance, marketing firms often hire subcontractors to handle design, writing, and editing tasks.