Blessed is the man, who having nothing to say, abstains from giving wordy evidence of the fact...
George Eliot
Business Services: Subcontractor Agreements
This is a sample agreement that our team drafted for a construction company that uses many subcontractors in various phases of its business. They found it extremely helpful in describing how they like to do business, what their subcontractors could expect from them, and what they expected from their subcontractors. Their policy was to make sure that each new subcontractor read and signed this document, and they discussed it in detail before going forward with a business relationship. This tool was hugely beneficial in preventing misunderstandings and clarifying procedures before the first task was done.

 
SUBCONTRACTOR POLICY

We welcome your association with XYZ Construction Company.The purpose of this agreement is to make you aware of our policies with subcontractors. Please sign this copy and return it to us for our files.

1. Teamwork: As a subcontractor of XYZ Construction, you have become one of our team. We look to you to help our jobs run smoothly. You are an integral part of our business, and both of our companies stand to gain or lose by your workmanship and professionalism. Always be cordial to our clients.

XYZ Construction will have a project manager assigned to each job, and he should be your first point of contact concerning any job related issues. If you anticipate a problem not addressed in our plans or find any code violations or technical problems, please notify him or our office at once.

2. Estimates: Bids must be submitted in writing and based upon a site visit and upon the plans provided. They should delineate the scope of work, what is included and what is excluded, and include a proposed payment schedule based on job milestones. If you have any questions about the plans, you should speak with the project manager.

3. Changes: If any of our clients request work directly from you such as extras or future work, you will need our authorization to proceed. All changes must be approved by our project manager or by our office staff. If time is a problem, you may proceed with our verbal approval, but you must follow up promptly with a written change order. It is not acceptable to proceed with work and wait a week or longer without submitting documentation for changes. No prices may be given directly to the client.

4. Insurance: XYZ Construction carries comprehensive insurance coverage including general liability, auto, and workers compensation insurance. You must have the same or else we are required to pay it for you. We will need proof of coverage upon starting a job, and if you do not provide us with proof of this insurance, we will not be able make any payments to you.

5. Job Schedule: Since your work may well impact the progress of other trades, we need to commit to a work schedule. The work schedule will be coordinated by the project manager who will keep you updated on the status of the work in progress. If for any reason you go to a job and additional work is needed before you can proceed, let our project manager or the office know at once. We can often resolve the immediate problem and prevent work stoppages with just a little notice. On many jobs the project manager will need to schedule periodic job meetings that you may have to attend.

6. Clean Up and Site Restrictions: Each subcontractor is required to clean up his mess. You should be attentive to the cleanliness and safety conditions on the site. Each day you should make the job site as presentable as possible and be responsible for your own tools, equipment, and any messes you make. You should use drop cloths whenever possible and place all debris either in a dumpster we provide or in an area designated by the project manager.

7. Receipt of Material: Upon occasion XYZ Construction will arrange for material such as light fixtures, plumbing fixtures, special trim or molding, etc. to be delivered to our office or to the job site. Once this material is either picked up by the subcontractor or delivered to the job site for installation, this material becomes the responsibility of the subcontractor. If material is lost or broken after it has been turned over to the subcontractor, it is the subcontractor's responsibility to repair or replace it.

8. Behavior on the Job Site: We are professionals and ask that our subcontractors behave in a way that reflects well on the company. We do not want cursing, drinking, drug use, loud music, horseplay, or any other behavior that can lead to poor workmanship or represent you or us in a negative way. Also, subcontractors are expected to stay focused on their work. If your project is on the second floor, for example, your employees should not be walking around in the basement. Finally, you may not smoke on our job site. If you do smoke, please go to the street and make sure you pick up the cigarette butts when you are done.

9. Workmanship and Getting Work Completed: We take great pride in our workmanship, and your work is expected to be done to the highest standards in the industry. It should be tested and inspected after installation (e.g., plumbing and light fixtures need to be installed and tested before they are turned over to us). If the work is shoddy or otherwise wrong, you are expected to correct it at your own expense. If you cause damage to the property while doing your work (for example, you fail to put a drop cloth over a granite top while working and the top gets damaged as a result), you will be responsible for the cost of repairs.

Work must be done in a timely manner. If for some reason your work on the project is going to be delayed, we need to know. Further, when you say you can get back to the job, we will inform the client of this fact and expect you to be there. If you are unable to complete the work, we have the right to hire another subcontractor to complete it in your place and deduct any costs from your contract with us.

10. Payment Schedule: Payment to our subcontractors is in accordance with an agreed upon payment schedule based on specified milestones. Subcontractors are not employees of our company, and they cannot expect payment every Friday. Every appropriate bill will be paid after a written invoice has been received and then approved by the Project Manager. While we try to stay within a two or three week time frame, payments may occasionally be later. Final payment will not be processed until all work is completed, inspected, and considered satisfactory by the project manager.

We look forward to working with you and hope the relationship is rewarding for both sides. If you have any questions about these policies, do not hesitate to contact the office.

Subcontractor:   Date:  
Signature:    
Address:    
Phone No:    
Fax:    
Points of Contact:    
   
  WritingHelp.com Incorporated • 1311 Allaire Avenue Ocean Township. New Jersey 07712
email: jon@writinghelpinc.com   732 531 1162 phone   732 531 5828 fax