Subcontractor Contract: A general contractor receives much work to complete in their day-to-day lives. Sometimes, due to any reason, they may hire another person to help them complete the work they were initially assigned to do. The hired person, in this case, is the subcontractor. So, the subcontractor is answerable to the general contractor in case of any mishaps.
Since the property owner does not directly hire them, their relationship with them is nil. But before the subcontractor starts working for the contractor, they are required to sign a contract. This contract is known as a subcontractor contract. This contract deals with the agreements between the two parties regarding the work to perform, the materials to offer, the duration of the work, and the payment.
If you are newly hiring a subcontractor, you must know what the subcontractor contract contains. Since this contract is confirmed before the work starts, any subcontractor is unlikely to start working without it. In this article, we are going to deliver comprehensive information on the same. Also, do not forget to take a peek at the information at GoBridgit to know everything in detail.
1. Offer Warranty And Indemnity Clauses
Generally, the subcontractor warrants their work against specific defects in materials. This may also be done against craftsmanship for a certain amount of years. In such cases, the contractor is deemed harmless from any claims or losses associated with the work they perform.
When taken into account, such things allow you to engage in a convenient working process and a seamless agreement with the other party. When you complete the construction work together, there is less room for stressful conversations and discussions.
2. A Clear Estimate For Work Completion
The general contractor and the subcontractor need to develop a precise estimate of how much time they will need to finish a specific task. This may be concerning the weather predictions. For example- if it is the rainy season, the speed of the work completion needs to be taken into account.
If you are a general contractor looking for a disciplined subcontractor, make sure that you specify a deadline before the deadline set forth by the property owner for you. This will compel you to make sure that you do not delay at any cost. Such a thing will also help you keep in mind that the work is completed without any hesitation by a specific timeframe to avoid any later complications.
3. Mention The Material Provider
The next thing you need to mention is the person who will provide the materials. The delivery of those materials needs equal consideration. If the subcontractor demands a separate set of materials to finish the work, you need to map out the responsible individual for that.
Generally, it is the subcontractor who provides their materials to work on. But on many rare occasions, you might have to do it yourself. Specifying that in the start helps lessen the complications and enables a more seamless working experience.
4. Specify The Payment Methods
One of the essential things and probably the foremost thing to discuss is the payment method. Since both the contractor and the subcontractor directly indulge in work for money, it is good to discuss the payment method on time. Make sure you both agree on how the subcontractor needs to be paid and by when. Do consider any delays if at all you think they may occur.
5. Event Of Breach Of Contract
Although in most cases, a contract breach isn’t something common to observe, it is best to agree upon it with your subcontractor so that you can ensure safety at every step of the way. If you have any plans to pass to the subcontractor any costs, it needs to be discussed as soon as possible before it is too late.
So, a subcontractor must not agree to a general contractor’s form agreement without enough discussion on the provisions. Make sure everything is analyzed carefully to leave minimal room for complications in the later stages. If there is any pressure to do so, the subcontractor can have another contractor observe the agreement and offer an opinion on it.
Another significant thing to keep in mind is to discuss the changes in work if any occur later. What happens if the work schedule changes later? Will you still get the same payment? Will you still be given the same deadline? These are specific questions a subcontractor is likely to want you to answer. As such, it is best to resolve such queries by simply mentioning them in the contract.
Both the subcontractor and contractor have certain rights and duties on a specific project. When you list them down carefully in the contract, you can have a seamless work experience and share long-term relationships with the party without any hindrance.
So, for example- if the subcontractor is to provide their materials and has their liability insurance, those things should be mentioned in this section. If either party fails to mention such essential specifications, it can create a controversial moment for both parties. So, why become a part of that?
These are some of the most critical specifications to mention in the subcontractor contract. So, make sure you specify them clearly in the contract before hiring the subcontractor. We promise; it will help you out.