A contractor hires a subcontractor to perform some specialised tasks. A subcontract agreement is a legal document that specifies the subcontractor’s duties and commits her to completing the work she's hired to perform. The contract protects both parties, spelling out the terms to prevent conflicts.
Description of Work
Subcontract agreements should include a scope of work that plainly describes the services the subcontractor is to perform.
Terms of Service
Terms of service should be included in the agreement and include start and end dates for all services to be performed. In addition, these terms should define the dates deliverables or milestones that should be met if work is to be completed in phases.
Conditions for payment should be clearly specified in the agreement. The payment section should include the compensation rate for the subcontractor and whether he is to be reimbursed for expenses. The section should include frequency and method of payment--for instance, whether she will be paid on a weekly or monthly retainer or by deliverable, and by what method, a bank transfer or check.
Other Rights and Privileges
Subcontract agreements should also cover issues of communications with third-party clients as well as regular interactions between the contractor and subcontractor. It should include provisions about property ownership and the treatment of confidential information to guard the rights of the contractor and his clients, among other relevant issues.
Sign and Date
For the agreement to be considered legally binding, it requires the signatures of the contractor and subcontractor. The signatures should be accompanied by the date the agreement was signed.
The agreement can be adapted or extended at any time by either the contractor or subcontractor with the other party's written consent.
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