Subcontractor Agreement for Construction
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FAQ
A subcontractor has a contract with the contractor for the services provided - an employee of the contractor cannot also be a subcontractor.
Licensing. Scope of Work and Payment. Timing. Defense and Indemnification.
Define the needs of the project. Finalize the provisions of the agreement, such as the due dates. Clarify the terms for payment. Write a draft of the contract and send it to the subcontractor for her review. Decide on a method to handle disputes, should one arise between you and the subcontractor.
Each subcontractor should complete Form W-9 before they begin any work. On the form, the subcontractor identifies their business structure type (sole proprietorship, corporation, etc.). Form W-9 also asks for the subcontractor's name and Taxpayer Identification Number (TIN).
Personal service is a requirement. There is a contract between the client and intermediary, or main contractor. The subcontractor must be subjected to, or subject to the right to, supervision, direction and control (SDC) The subcontractor's fee is not already employment income.
A subcontractor agreement is a contract between contractors or project managers and subcontractors. This solidifies any agreement between the two parties and assures work. Subcontractors should read the subcontractor agreement and assure specifics to protect themselves from unfair risk.
