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What Is Subcontracting? Subcontracting is the practice of assigning, or outsourcing, part of the obligations and tasks under a contract to another party known as a subcontractor.
What does the subcontractor agreement need to say to protect you? During this article, we'll call the webshop owner the ?contractor? or just ?you.? The ?client? is the person that hired you for the project, and the designer and programmer are ?subcontractors.?
An example might be a construction company that's been employed to build a house deciding to subcontract all the plumbing and electrical work out. In other words, they are paid for the entire job, and then they pay a plumber and an electrician to do specific parts of the job.
When you are looking at supply chain procurement, there are three types of subcontractor: Domestic Subcontractors. Nominated Subcontractors. Named Subcontractors.
8 things a subcontractor agreement should include Business information. Include names, businesses names, and contact information for both the subcontractor and the hiring contractor. ... Scope of work. ... Payment terms. ... Change orders. ... Licensing and insurance coverage. ... Dispute resolution. ... Termination clause. ... Flow-down provisions.
For example, a freelance trainer might be subcontracted to provide training to an end client on a specific area of expertise while the rest of the training package is provided in-house by the main contractor. In such circumstances, the scope of the works requested should be outlined in the subcontractor agreement.
Subcontractor examples A digital marketing agency may engage a copywriter to perform the content and copywriting tasks as part of a larger project. A contractor in the construction industry may hire an electrician to perform electrical wiring services as part of a building job.
A subcontractor agreement is between subcontractors and contractors which states that the subcontractor will complete work on behalf of the contractor. In addition, the agreement summarizes the payment terms, the scope of work, and the obligations of each party concerned.