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Under CDM, there must be a principal contractor on any project with more than one contractor. So, if you're using subcontractors, at any stage in the project, there must be a principal contractor. In practice, this is usually the main contractor.
A subcontracting agreement is an agreement between a main contractor and a person or company (a subcontractor) delegating part of the main contractor's work or obligations.
Considerations when hiring a subcontractor To protect your business and the subcontractor you employ, it is important to establish the terms of the work they will complete in a written contract and agree it, before bringing them on board. Such a contract may include: Payment amounts and dates/milestones.
How do I write a subcontractor agreement?Negotiate and finalise all terms and conditions of the agreement.Draft the agreement in writing and send it to the subcontractor for review.Review the agreement, sign and execute.
You can be a contractor on one project and a subcontractor on another. You can begin working on one project as a subcontractor and then find yourself subcontracting out your own portion of the project to another subcontractor.