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A subcontractor agreement is a legally binding contract that will hold up in an Australian court of law. As well as protecting both parties involved, the agreement also makes sure everyone knows where they stand in the relationship and what is expected of them.
Subcontracting is the practice of assigning, or outsourcing, part of the obligations and tasks under a contract to another party known as a subcontractor. Subcontracting is especially prevalent in areas where complex projects are the norm, such as construction and information technology.
The disadvantages contractors doing this work lie in costs: The hourly expenses are high, and the professionals are independent in that they don't report to supervisors inside the company. These factors make it challenging to control the costs of these subcontracts.
A subcontractor agreement, or subcontractor commercial contract, is a legal agreement between a contractor and subcontractor that sets out the terms and conditions of their relationship and the provision of services/projects to be undertaken.
: to let out or undertake work under a subcontract. transitive verb. 1 : to engage a third party to perform under a subcontract all or part of (work included in an original contract) sometimes used with out. 2 : to undertake (work) under a subcontract.