Different ways of writing a subcontractor agreement
The big companies and even individuals often hire contractor in order to make things simpler. And nowadays even the contractors hire some subcontractors to get some parts of the job done. This type of outsourcing has actually made things much simpler and more efficient for all the people involved in a project. But it has increased the complexity in terms of paperwork. The contractor is not only in an agreement with client but also with subcontractor. And the subcontractor does not get to deal with the client he is actually working for.
If you are going to work as a subcontractor or are about to hire one you should very carefully get an agreement made. There are three ways of doing that. All of them are described below in great detail.
- The easiest way is to hire a lawyer. He or she will create a foolproof document with zero errors and liabilities. You can then give it to the other party to get it checked from their lawyer. If everything is good, you can sign the agreement.
- If you want to do it without spending any money, you can download samples and templates from the internet. Just make a few changes in the document and you are good to go.
- There are some web based tools on the internet that have made it very easy to create legal documents. You just need to fill out a form that asks for simple details. When you hit the button, you will get an agreement.
Sample Template Preview
The Owner Agrees to:
Provide necessary utilities at the job site.
Be available during normal business hours to answer questions.
Provide draw inspections on a timely basis.
Make draw payments as detailed in the Draw Schedule below.
The Contractor Agrees to:
Provide all labor and materials necessary to complete the work detailed below.
Have sufficient manpower on the job all day every business day.
Perform all work in a workman like manner to comply with industry standards.
Leave the job clean at the end of each day.
Perform work specified including Standardized Items on Scope of Work (attached).
Use only the paint, electrical and plumbing fixtures specified by Westwinds.
Notify Owner when draw inspections are required.
Timing of the Contract
Work will begin on the property on ________________________ and will be completed by the contractor on or before ______________________. Rain days will be given, 2 for 1; 2 days extension on the contract completion date for each day there is rain while work on the exterior of house is actively in progress.
The default date of this contract will be __________________________. If the work is not completed by the default date (5 business days after the stated end of the contract), this contract will become null and void and no further payment will be due the contractor. If a mechanics lien is placed on the property by the contractor or subcontractors after the default date, or before the default date if the work is not completed, the contractor agrees to pay Owner $2,500 in damages, plus any and all expenses and attorney’s fees necessary to recover the damage and all other damages entitled to Westwinds by law.
If the work is completed in a satisfactory manner to the owner by the default date, contractor retains all rights and remedies allowed by law if payment is not tendered as agreed.
Late Penalties and draw inspection chargebacks
The contractor will be backcharged $50 per day for every day project runs beyond the completion date stated in this contract.
If the work represented by the contractor to be complete is incomplete when Owner arrives to inspect for draw, Owner will backcharge the contractor $50 for each additional trip necessary to complete the draw request as submitted by the contractor.
Draws will be based upon full completion of the work specified by trade as listed below. The contractor may call for 3 intermediate draws and one final draw for a total of 4 draws during the project. Owner and the contractor will agree upon draw amounts before the work is to begin.
Draw requests must be received by 5:00 p.m. Monday to be inspected Tuesday or Wednesday and checks paid on Friday of the same week. Draw requests presented after 5:00 p.m. Monday will be processed the following week. No exceptions.
Draw Purpose $ Amount Date Scheduled
1 Materials ____________ _____________
Sheetrock ____________ _____________
Plumbing ____________ _____________
Final Completion ____________ _____________
Final (Completion) draw request will not be honored until all of the work has been completed in a satisfactory manner and inspected for completion and compliance by Owner.
A ten percent (10%) retainage may be held from each draw until completion of punch list items and final acceptance by Owner.
The Work Amount
Materials Draw $___________
Exterior Door Replacement
Repair or replace all screens as needed
Make all window locks operable or replace them
Install slider pin on patio doors
Paint breaker box, A/C disconnect box in exterior color $___________
Monarch Winter White flat walls and ceilings
Monarch Alkyd White White High Gloss on all trim
Paint the inside of the fireplace flat black
Sheetrock repair, finishing, and texturing
Interior Door Replacement
3. Install fixtures, miscellaneous items
Finish Electrical Work:
Repair or replace the doorbell as needed
Replace all switches, outlets and cover plates
Install GFCI’s within 6’ of sinks in kitchens and bathrooms
Install GFCI’s to protect garage and exterior outlets
All new polished brass light fixtures
Frosted swirls in kitchen and kitchen eating areas
Chandelier in formal dining room
White/polished brass ceiling fans with schoolhouse light in all bedrooms
Polished brass front lanterns
Vanity fixtures with white frosted baseball bulbs in bathrooms
Small polished brass globes in hallways
Polished brass jelly jar fixtures at exterior doors other than front entry
Replace all non-working lightbulbs
Finish Plumbing Work :
Replace toilet seats with white painted wood seats
Add new shower rods and curtains to bathtubs and showers
Change kitchen sink to double bowl, stainless with new metal faucet
New vanity, sink and faucet in bathroom if only one cabinet
Replace dripping or non-functional faucets and shower diverters
Finish Carpentry Work:
Replace cabinet knobs and pulls with polished brass
Interior passage and locksets replaced with Kwikset Levers
Wallpaper borders in the kitchen and bathrooms
Cut down or replace mirrors with noticeable deterioration
Install chrome toilet paper holders and towel bars in the bathrooms
New Kwikset polished brass entry locks, deadbolts installed
Total Project Cost $_______
Scheduled Completion Date _____________________________
Agreed and Accepted this the _____ day of ____________________, 20____.
Contractor Social Security Number/EIN
__________________________________ Phones: __________________________
City, State, Zip code
The Pinnacle Group LLC.
Attach “Standardized Scope of Work” to be a Part of This Agreement