Construction projects are often large and complex, and as a result, are subject to various types of documentation and agreements. Defining the responsibilities and rights of each contractor in writing is crucial for a project’s success. Keep reading to learn more about subcontract agreements, as well as how to compose one.

A subcontract agreement is a legally-binding arrangement made between a contractor and subcontractor that describes the work to be performed on a project. In exchange for the services provided by the subcontractor, a contractor agrees in writing to pay a specific amount of money within a certain period of time. The agreement also describes at length a subcontractor’s obligations.

With how complicated construction projects can be, subcontractors are usually necessary to complete more specialized portions of the project, such as concrete or electrical work. They’re expected to have the skills, expertise, and certifications to finish the job safely and within budget. Using subcontractors can save on costs, as they’re usually brought on for a temporary period of time rather than being paid at a constant rate like regular full-time employees.

However, if you are hiring a subcontractor on for an extended time, their tasks may be numerous, with responsibilities changing over time. You’ll want to get all subcontractor obligations in writing to minimize the likelihood of disputes, but writing a new subcontract form agreement for every additional task can be tedious and unproductive.

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