Subcontractor Agreement Sample

Things you should know about the Subcontractor Agreement

Before we know further about subcontractor agreement, it is better for us to know what is a subcontractor, and what is a contractor. A subcontractor is a person or business that carries out work for a company as part of a larger project. While a contractor is an individual or entities which provide labor or materials to the subcontractors.

Subcontractor Agreement

A subcontract agreement is a declaration of a contract between project managers and subcontractor. Subcontractors should read the agreement to avoid an unfair risk. The content of this contract usually a specifying term like when the contractor should pay and how much it is, what service should subcontractor provide,  the scope of work, and so on.

The content of this letter generally consists of the date and place of the letter made, the constructor name, and the agreement contains and purpose. You can search the free template on the website to know better about this form of agreement. This contract relatively easy to make, because the clause is filled in the template already. The functions of the agreements are to ease the contractors when made law documents. The doer of unfair behavior can be punished by a legal law because these agreements are made as a formal contract.

 

Types of constructor contract

There are some common variations of the subcontractor agreement which usually based on the services provided and received rights for both parties :

  1. Fixed price contract

This type of agreement included all of the total fixed prices during the construction activities. This contract can be used when the owner needs to share the risks to the builder to avoid unspecified work.

Subcontractor Agreement

  1. Time and materials contracts

The owner and the builder should establish hourly or daily rates, include additional expense during construction activities. This agreement usually made when the work scope is unclear, or not defined.

Subcontractor Agreement

  1. Cost plus contracts

This type of agreements generates all payment of the actual cost which directly occurs during the construction process. This contract should contain the specific amount or percentage of the cost.

Subcontractor Agreement

 

  1. Unit pricing contracts

By providing the unit price contracts, the contractors can verify the acquired goods or services being charged. So, it can be easily adjusted increased or decreased during the construction process.

Subcontractor Agreement

After knowing the types of subcontract agreements, the contractors have a choice to decide which kind of contract that can be clearly fulfilled. This is to avoid the risk of unfinished rights and obligation among parties. After filling the agreements, both parties have to sign the contract to legalize the agreements and get the legal assessment from the courthouse. It is also shown the responsibility for both contractors and subcontractors to doing their obligation and receiving their rights from and to each other. And they can attack by law if there is an agreement’s violation among parties.

 

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