Subcontractor Agreement Template
Here is a useful Subcontractor Agreement Template that can be used to create comprehensive Subcontractor Agreements with your Subcontractors no matter what business or industry you belong to. Such agreements are very common in IT or Software Development industry where small tasks or projects are outsourced to reduce cost and also to meet tight deadlines.
A Subcontractor Agreement is a commission between two groups or companies for example AC as the contractor, and DF as the subcontractor. Now, both the contractor, and the subcontractor will be tagged as the sole purpose of the agreement. The agreement will be dated as, date/month/year, and hence, it shall obtain into the aftermath on date/month/year. This agreement basically pertains to a project of construction, and the details to such contracts are given below:
·The fist focusing point is the work description and time-line.
As it is a customary requirement with subcontractor agreements, it has to be a clear outline of the work expected to be done by the subcontractor. In a legal term this is placed in the exhibit A of the annexure of any subcontract agreement. This implies that the following consideration is in order, after the agreement has been signed.
·1.1: clearly states that the subcontract shall complete the task as per specifications provided in Exhibit A of the annexure. The subcontract is legally obligates to strictly follow all the specifications, and finish the project on the specified date.
·1.2: According to the subcontract agreement, the work is deemed complete when all the criteria in Exhibit B have been completed.
1.3: It is compulsory that the date of completion of work be places as date/month/year.
Here is preview of this Subcontractor Agreement Template,
2. Payment Modalities
it is required with the subcontractor agreement that a detailed account of the payment modalities relating to the work being done is to be provided. Given below are the payment details for the entire agreement.
2.1: In consideration for the work being done, the contractor is bound to pay the subcontractor a sum of XXX.
2.2: The payment must be made in two parts, the first 50% of the payment shall be made when the contract is signed, and the rest on the time of completion.
2.3: The agreement states that the final payment be made upon submission by the subcontractor of guarantees, quality and life of materials used in the project, and other documents. Payment will only be made if such materials meeting the criteria explained in Exhibit A.
2.4: As according to the subcontractor agreement, once the subcontractor has provided the contractor with his bill, the contractor only has 20 days to inspect the quality of work done. Payment has to be made within 20 days of receiving the invoice.
3. Behavioral requirements:
The subcontractor agreements, a certain behavior are expected from the subcontractor during the course of the signed agreement.
3.1: The subcontractor is responsible for maintaining proper cleanliness of the site, and must remove all wastage and debris in a day after it accumulates.
3.2: The subcontractor’s agreement clearly states that neither the subcontractor nor the contractor is allowed to smoke or consume alcohol on site.
3.3: As a customary all workers shall take adequate safety precautions, which include wearing hard hats, while working on site, and even when walking around in site.
Above mentioned are a few basic laws and they can be anything you wish to put in the subcontract agreement.
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