Subcontractors are essential to most large construction jobs, but they can also cause some major problems. To help avoid miscommunications and other issues, it is critical to always use subcontractor agreements that are properly written, and include all important information, and signed by all parties involved. The following are five of the most important things that should be included in every subcontractor agreement.
1. What Work is Required?
Give a detailed description of what work needs to be done by the subcontractors. This should include information about where the work is needed, what type of materials should be used, the colors (if applicable) of the paint, and much more. The more detail that can be included here, the less likely it is that there will be any type of conflict that needs to be dealt with here. It can be helpful to have all parties involved work together to write up this section of the agreement so you can be confident that all parties are on the same page.
2. Include Important Dates
Specific dates by which work needs to be completed need to be included in the agreement as well. The dates should be very realistic, and take into consideration different types of problems that may occur while the work is being completed. It can be a good idea to have multiple milestone dates in place to help keep the project moving forward. If there are any penalties for missing deadlines, or rewards for finishing early, those should be listed in this section too.
3. How to Exit the Agreement
There are times when a subcontractor just won’t be able to complete the work as agreed upon. Having specific instructions on how to cancel the agreement, and what (if any) penalties will they face for backing out. When having this portion written up, make sure to consider the impact to the overall job in determining what will need to be done should the subcontractor agreement have to be canceled.
4. Insurance Requirements
If you need the subcontractors to hold specific types or amounts of insurance, this should be listed in the agreement as well. It may even be a good idea to add in a section where the insurance policy number, the company through which it was acquired, and any other relevant information so it is all easily accessible and verifiable.
5. Signatures & Initial Areas
All contracts will have a place for everyone to sign at the bottom, but subcontractor agreement may need some additional signatures and initials. Having a spot for the subcontractors to initial for each section can serve to verify that they have read and understood the information contained within. This can help to further strengthen the agreement should it be challenged.
Get the Help You Need
Don’t try to craft a subcontractors agreement on your own. Instead, work with an experienced construction law attorney to ensure everything is handled properly. Contact FCLG to go over all your options, and get your agreements written properly.